All Forum Posts by: Adam Britt

I know this doesn't exactly help you, but as maybe a little encouragement  ... you are already where I want to go with real estate! That is far more than my yearly income at my 8-5.  The fact that you are there even with your full time job is encouraging to me! Even once you have "arrived" at my destination, you are looking to grow even further! That is excellent! 

Interesting take on the MLS. I'm a 30 year old wannabe investor, HOPING to buy my first duplex this month for house hacking. Honestly, I have no idea how I would even begin trying to get deals off market. Even with using MLS, it has taken a year to even find a single duplex that wasn't in a horrible crime area. Plus, even if I knew what "driving for dollars" was, it doesn't sound like something an individual with 2 jobs already can do on the side. I'm definitely going to stick with ANY deal I can get at first. If it helps my cash flow, I don't care if it is 1%. It is something.

In the meantime, I would love to hear more about finding these off market deals.  Any books you would suggest or tips you would give? I have zero clue how to use direct mailing, or even what driving for dollars is, etc, and how it would apply to finding deals. 

Good evening, Bigger Pockets community! 

After reading a number of books and blog posts here, BP has convinced me absolutely that House Hacking is THE option I need to be pursuing as a fledgling would-be investor. Now, I live in Birmingham AL where we have searched for months and the only multifamily options we have found are in very very high crime areas. 

It just so happens that my realtor has found a duplex in a very solid up-and-coming neighborhood. Most homes in this neighborhood sell within hours to days, so we don't have long on this one. I have two very specific questions, but I also have zero idea what I'm doing, so I am looking for advice on what to do and what not to do.  Below are my first questions, but PLEASE feel free to dialogue if you have advice about this situation.

1. Currently, both units in this duplex are being rented. While that is a great thing, that is also a bad thing. We were planning to move in. If I want to buy a duplex as a House Hack that is fully rented, what are my options? Do I need to wait till lease is up? Can I purchase it with an FHA loan if I'm unable to move into the house at first?

2. My realtor, who admittedly has not dealt much with investments, is under the impression that you cannot use an FHA loan for a rental property. He expects I will need to pay 10-20% down to attain this property (which is more than I have in savings at the moment). Can anyone confirm if an FHA is indeed an option? And any other things I need to know about it? I do have a few "creative finance" options that I might can explore, but I would rather FHA it so I can own it clear.

3. What other pitfalls do I need to really beware of? I'm afraid of paying more than I should, but I literally just saw the listing in the last few minutes and I'm trying to get this ball rolling.  We have been outpaced with every house purchase attempt we have made in the past year! 

Tonight I'm pulling out those BP books again to see what Scott and Brandon had to say on the subject, but I would really appreciate some insight and discussion. 

@Shiloh Lundahl

Well, what a small world! I bet you already got the goody then! Man, I sure would love to find more investors in this area.  I need opportunities like that! 

So, I feel I am absolutely the LEAST qualified to give advice here, but I've been reading like a madman, and what you did sounds exactly like what Ben Leybovich does in his book House Hacking (here on BP).  He has it spelled out exactly how he deducted a specific percentage of the utilities based on the size of the house rental. Or something like that. Hard to evaluate information without framework on the topic.  Anyway, I can highly recommend that book! Looks like you are already DOING what it is trying to convince you to do.  Maybe he will have some golden ideas in there to make your tax season more friendly at least! I'm quite jealous on how well you have made this work.  Really hoping to do the same myself! 

Generic and unmemorable, without part of your name. I'll be doing my LLC in the coming months, and THAT advice is going to be very valuable. Thank you.