Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
House Hacking
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago,

Account Closed
0
Votes |
2
Posts

Analyzing a House hack

Account Closed
Posted

Hi everyone! I'm looking to buy my first property in Philadelphia this spring and I need some assistance analyzing deals. I'm interested in purchasing a multi-family unit and house hacking. I plan on using a 3.5% down FHA and I'm torn between two deals. My ultimate goal was to reduce what I pay currently for my rent, and both properties would achieve this.

Deal A: Triplex, ( 4bd, 4 ba - 1,700 sqft total) newly renovated, in a developing area (Brewerytown- a lot of investment in this area, steady appreciation and slightly further in terms of proximity to bars and entertainment) . Two of the units are already rented, and I would live in one unit with my partner and we would split that rent. The projected rents for this deal are in line with the market rents. 

Deal B: Duplex ( 5bd, 5bd - 2,400 sqft total), new construction, Also in a developing area BUT this neighborhood (Kensington) is in close proximity to a very trendy part of town (Fishtown). This duplex is vacant and the projected rents would require me to pay a little bit more than market value for the unit i'd be living in. Upside is the area and potential for appreciation. 

I'm trying to understand which deal is a better investment or does it come down to preference? How much value should i be putting on potential appreciation? I think both areas are promising, but perhaps deal B has a better location.  Deal B is larger. Deal A numbers already work. Deal B would require me to pay more (few hundred bucks), until the rents in the area are up to market level, but the trade off would be potentially having a more valuable investment. 

What are some key things to think about when buying a househack? Thanks in advance! 

Loading replies...