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Updated about 7 years ago on . Most recent reply

User Stats

28
Posts
8
Votes
Gerardo Lozano
  • Residential Real Estate Broker
  • Schaumburg, IL
8
Votes |
28
Posts

Move out of my Triplex for a SFH?

Gerardo Lozano
  • Residential Real Estate Broker
  • Schaumburg, IL
Posted

Hello All!
Looking for advice on what to do.

I'm house hacking and generally happy living with my great tenants, however I've welcomed 2 beautiful daughters to this world and our current 850sqft 2Bed/1Bath unit is starting to get cramped (particularly with fam visits over the holiday!)
If I move out and get my unit rented out, I'd clear ~$250 after (PITI, vacancy, repairs, Capex, P.M., etc.) so not too much all said and done.
My problem is that I live in a relatively desirable Chicago suburb with good schools, high values, and ridiculously low inventory. I've send dozens and dozens of (not-even-that-lowballish [~85% of asking]) offers to SFHs in the last 5-6 weeks (it helps that I'm my own agent) but have not had any luck... 
Weighing the options of:

A) Not moving, keep living for almost free (which is awesome).. [everyone reading this on the fence about house hacking GO FOR IT!] 

B) Buying a house like a regular home buyer would and paying ~$5k less than asking

or

Secret option C) Kicking out my seriously awesome tenants who I inherited and who've lived in their 1850sqft 3Be/2Ba "main" unit for 18 years  

PROs:
A: Keep saving a good portion of income to purchase cashflowing deals on other areas.

B: Expand my RE portfolio and "settle down" for a couple of years. (A month not collecting rent on my unit is lost revenue).

C: $2,100 in gross rent to offset $2,750 PITI (Still house hacking with all the space I'd need)

CONs:
A: Space is tight

B: Taking on a big mortgage which would seriously hinder my ability to save & refinance in the future.

C: Loosing a great tenant who pays on time, does his own repairs (and carpet cleaning), and as a roofer even fix my roof for free.

Thanks for reading and for your comments!

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