Duplex in Southern California

[Stacey Ocampo]

Hi guys! I am trying to analyze deals every week and studying my neighborhoods, driving for dollars, and looking at different listings while studying for my real estate license. I am new so I am a sponge and want to learn the most I can. I came across a duplex in my town (I grew up here in Santa Clarita and it’s been developing a lot these past years). I was wondering if someone was willing to help me fill in what else I’d need to put in the bigger pockets calculator. (Need a little bit of guidance).

The duplex I found on Redfin. It is listed for $660, estimated monthly is $2,985, built in 1962, pictures show it needs light rehab, painting, new cabinets. It has 2 units, each having 2 bedrooms and 1 bath. Could this be a possible house hack to calculate? I know there might be information missing, I can fill it in if someone tells me what to fill in. Thanks ahead for anyone willing to help!

[Dan Schweit]

@Stacey Ocampo

Hi Stacey. This would definitely qualify as a house hack if you’re going to no live in one and rent the other. And honestly, house hacking is one of the most foolproof options to use to start investing. Your personal living expenses are part of the equation, you get to experience being a landlord, and there are some very favorable lending options as well. You just have to figure out all of the expenses on the property (piti for your loan, repairs and maintenance, vacancy). Then figure out what each unit would rent for and you’ll get to where you need to be as far as deciding whether it’s a good deal for you. Feel free to DM if you have any specific questions. You’re on the right track with the house hack idea.