All Forum Posts by: Benjamin Andress

Hello everyone, this should be a fairly simple question for those who have experienced something similar. But I am new to this :)

I recently purchased my first investment property. It is a duplex with 2 br in each unit. There are two boilers (one for each unit), but only one water heater. I am assuming this water heater runs on electricity/gas from the lower unit but I am unsure. We also only have one water meter for the house. 

I had a section 8 inspector come out and they took issue to it and I have since decided against section 8 anyways. 

How should I go about working this out with my tenant? At first I will be living in the upper unit so I was considering paying the water bill as well as maybe garbage while the lower unit will pay for the water heater - for both units (which will automatically be on their bill). 

When I move out, this situation would become a lot more interesting so I am looking for any advice anyone may have. Any input would be greatly appreciated. 

Thanks,

@Conor Hesch, What type of loan is this? And where would I apply? I have never heard of it before.

I just graduated college and got a good job in the twin cities area. For those of you unfamiliar, that is the two biggest cities in Minnesota, Minneapolis and Saint Paul. I am renting now because I needed to find a place to move into immediately after graduating, and had no down payment.

I would like to start as soon as my lease ends. I plan to buy a duplex that I would like to live in for maybe 5 years. My girlfriend is going to grad school and we could see ourselves staying in this duplex for roughly 5 years. Correct me if I am wrong, but I am thinking that foreclosures are out of the realm of possibilities because of their timeline. I am looking to move in straight after my lease. Anyways, that is essentially the backstory now here is my biggest question.

Would I be ok to buy a duplex closer to the top end of my wanted budget (roughly $220,000) because I plan to live in there for awhile. OR is it only smart to buy a more affordable duplex that would be considered a 1-2% property. The duplex for $220,000 would have each side renting for roughly $1,000 per month before renovations while a house that I could buy for roughly $60,000 would have both sides renting for roughly $700 per month. Also, these $60,000 houses tend to require more risk of foundation issues, and would also require a more extensive renovation to increase rent.

I know this may be a long post, but I signed up for this website to get advice and information. ANY advice you may have for me would be greatly appreciated.

Bonus question ;) 

I tend to prefer side-by-side duplexes and sometimes have a hard time even looking at up/down duplexes. I just feel that if I were the one renting, I would much prefer to have side-by-side because of reasons such as hearing footsteps while living in the lower unit ect...  Am I right in having this preference? OR, if I am getting into this business, should I ignore my feelings about properties and just do what makes sense on paper?

Thanks so much, I look forward to hearing what people have to say!!!