All Forum Posts by: Anthony De La Rosa

First of all thank you all for your input! It's all well appreciated and I will definitely take every word into consideration. 

@Michael Noto 1.) No I don't really want to live in a low income area. I grew up in a low income area and in some ways it will feel like I'm taking a step backwards. The numbers make a little bit of sense but yeah my sense of security will be gone.  2.) I haven't gonna as far as to hire an inspector just yet but if the major things are taken care of I don't mind doing the little things like replacing cabinets and painting. 3) Are my expectations realistic? In my opinion, yes. I personally think I can reach my overall goals with persistence and determination. I may or may not like HOW I reach them but I'm sure, eventually, I will.  

@ChristopherGiannino 1) No I don't personally want to live there. I was hoping to buy to begin my investment portfolio. I know it will take some sacrifices to even begin but how far will I need to sacrifice is what I'm worried about with this property. 2) I don't "know how" nor have I ever dealt with low income tenants on a landlord perspective. Like I said this will be my first investment and will be a huge learning experience for me. Do I want to deal with low income tenants? Obviously nobody wants to but I'm open minded to any experience to help me reach my goals. 

Since I am just beginning my experience my main goal is to live for free or less than a few hundred dollars. With a house hack this achieves just that. For example with this property, assuming I buy for the asking price of $150,000, my monthly mortgage payment will be approximately $1100-$1200( I did get a pre-qual from a loan officer I know personally). Each unit rents for a minimum of $900. If I rent one unit for $900 and rent the other half of my unit for $400 that'll put me at $1300 gross income monthly. That pays my mortgage, allows me to live for free, and allows me to save significantly for my next property. So in a sense yes this property could help me achieve passive income in the long run. After I'm able to move out I'll  able to rent both units out without a gross income of $1800-$2000. In the end i guess my main question is whether or not I want to invest in a low income area. 

Again, I appreciate all your inputs and will take everything into consideration. 

Hello everyone! This is my first post ever. I've been listening to the podcast for a few months and reading a few books to self educate about real estate investing. To keep me from being stuck in analysis paralysis I've been looking for a multi family property that I could house hack. I finally found one that is closest to my current job and the price fits my range. It's a "duplex" on the market for $150,000. By duplex I mean it's 2 units in a small apartment complex. Each unit was currently renting at $900 but was "newly renovated" and should be able to rent for $1000 each. Newly renovated meaning they replaced the bottom cabinets in the kitchen and installed granite countertops and new laminate and tile floors. 

So I was excited to finally find a property in my price range that I could house hack. Here's my problem. I went to go look at it yesterday and let's just say the pictures and description look way better than the actual property does. The top cabinets in the kitchen are still old and don't match the bottom cabinets. You can see the thick multiple layers of different shades of white paint used on the inside of this unit. It's located in a very low income area.  Found a couple of holes in the walls. It's also very easy to spot the multiple patches they have made in this unit. Suddenly it doesn't feel like it's worth $150,000. 

What I'm asking for is some advice or really some motivation on how to proceed. Should I swallow the knot in my throat and begin my REI portfolio by buying this property? Or should I avoid possible disaster and keep looking for another property?

Thanks in advance for any advice!