All Forum Posts by: Alan Asriants

0.5 Miles from campus is pretty far, considering the surrounding area of Temple. If you are towards center city that puts you under girard and closer to Northern Liberties, Fishtown, Fairmount etc. These are more favorable locations, even better than being close to Temple IMO. 

Lots of new construction near the North Lib/ Fishtown area, so that market is currently saturated. You will have better luck going southwest to Fairmount.

0.5 miles north of campus or directly east or west can put you into very unfavorable markets. 

if you have that much equity, you can purchase the property with conventional and then ask for PMI waiver due to equity.

Hey Nicholas, sounds like a pretty sweet situation you are in!

I think that paying off Home one with the stocks could be a good idea, depending on the returns that you get on those stocks. As far as home two, don't know if it makes sense to use equity from another home, especially with higher rates now to pay off that property. Technically, you're using equity which is better to pay off in debt so restructuring could be good, but you need to really look at the returns. The rate that you'll get now for a home equity loan might be too high, and you might actually crush your cash flow. But you have to run the numbers and really see if it makes sense. But my guess is that it won't. 

If you're going to house hack, you need to ask yourself the following question:

Would I live here?

Whether you are considering moving or staying in your own area, you should really evaluate the neighborhoods and make sure that WHERE you are buying is a solid area. Don't chase cash flow - which it doesn't sound like you're doing.

Just becasue you read online that X, Y, and Z city is good to invest in, doesn't mean the fad is true. Being from Phila, I can tell you that this can be a great or horrible market to invest in - all depends on LOCATION!

So to summarize here are some tips for a newer investor looking to househack:

1. Know your market really well - who lives there, what kind of rent to expect, Would I live there?

2. Try to buy after 1950 and avoid single family conversions. The layouts are funky, often poorly done, and if they haven't been rehabbed in a long time then you need to likely fully gut the darn thing

3. Don't chase unit counts. Too many people want a triplex and quadplex that they let great duplexes pass them by. 3-4 unit properties are hard to come by and you could be waiting a while for a solid one (plus competition might be really high) 

4. Owner occupied properties tend to be better buys - well taken care of, and major cap ex usually done

Best of luck!

Start with a Househack. It is the easiest barrier to entry (best Interest rate and low down payment req). You learn the ropes of investing right in your backyard. Live in it for sometime, when you are ready to move out, rent it out. Its the best way for anyone to get started IMO.

Will add that in todays market you might need to put down more than the minimum 3.5-5% in order to not be cash flow negative.

I charge a $500 deposit or a $25/m pet fee

But I have a condition...

I tell the applicant that I usually do not take pets, but I do make exceptions. I first need to see their place before I make a decision. 

I have a dog and my place is spotless, and I know plenty of people who are the same way. Its not the animal - it is the owner. 

Seeing their place is a great way to tell how your tenant will take care of your property. Might start doing this for all tenants - even without pets. 

If they deny me to enter, I deny them

That is a crazy request by your tenant. The fact that you agreed to update his flooring is very nice of you in the first place. I Wouldn't mind upgrading my tenants unit as well (if it is a tenant I want to keep), but the upgrade would come at a cost. 

I would need to increase their rent (be reasonable) to cover the new costs. 

I would explain it this way: If you move out and I upgrade the property, I can charge more rent for the newer cosmetic finishes.

Seems like the tenant is trying to take advantage of you here...

Would you really get a hotel for a 1 day job in your place? Probably not... 

Unless this is the Ritz Carlton or something lol. 

Just sent you a DM with a couple of agent recommendations for insurance. 

Understand how a Home works. 

Basic plumbing, electrical, HVAC knowledge will go a long way. Also understanding how things are put together, how siding works, gutters, etc (basically as many aspects of the home as possible)

Having this knowledge will also help you from getting burned by contractors telling you things just so they can save time and money and deliver a crappy service. 

Study and read your local lease template

Read, read, read.

Watch youtube videos online of some basic building and construction. You won't learn everything and you will still have 1M questions, but this will give you a base.

How are the heating units displaced in the property? Is it one giant water heater and heater or does each unit have their own heater/water heater?

What is the condition of the roof, siding, plumbing, electrical, etc?

Do all tenants pay on time? Have owner provide proof of payment (likely no one will give this to you until you are under contract)