Analyzing Properties For A Multi-Family House Hack

[Mark Francour]

I am new to the Tampa area and looking to buy a small multi-family property to house hack this summer. I have begun analyzing properties in the Tampa, Clearwater, St. Pete area.

Being new to real estate and analyzing properties I feel like I am still "winging it." What advice would you give to someone that is starting their process of looking at properties? Would you use the BP Rental property Calculator, or create your own Excel Spreadsheet with formulas? Are there any specific expenses that are abnormally high or unique to the area?

Obviously, the current state of the market it has been tough to find many deals in the area. Is there cities/areas nearby that you would suggest to look at for properties? Areas that you see potential growth as the Tampa market expands?

Thank you!

[Marcus Auerbach]

My team and I work with a lot of house hackers in Milwaukee, but I guess some general advice should translate:

1.) Buy a larger property. Rent is a function of size, long term ownership expenses are driven by # of kitchens and bathrooms. Bedrooms and living rooms cost little to own, but they generate the income. (I made that mistake of opting for smaller on my first one 15 years ago)

2.) The worst house hack in town still beats buying a single family home every time. So analyzing cash flow is not the most important metric.

3.) Buy in the best quality neighborhood you can comfortably afford at this point. You will never regret that.

4.) Focus more on understanding the value than the price. Most of your competition does not understand value, so they focus on price (cheap deals) and drive them up.

5.) Include the next 10 years of major expenses in your consideration. Roof, windows, HVAC, plumbing, driveway - anything that's already new, is big money you won't have to spend.

6.) Find an agent who understands these things, preferably has either house hacked or is investing in small MF or SF. And does at least 20 deals per year, over 30 is better. Best place is here on BP. You may have to interview several to find a good one, but it's very much worth your time!