All Forum Posts by: April Causapin

Thank you so much! It is definitely on the negative cash flow side but looking into buy and hold and being able to live in an area I like. 

Hi! Will this be a wise investment?

Purchase price: $1,100,000

15% down payment, 7% interest rate

Duplex: Two 3bed/1bath + den with unpermitted bath/kitchenette in two car garage. 

Market rent: $2895 for each. I’m planning to update and repaint, maybe increase rent on one side to 3000-3100 while I live in another unit and replenish to legalize garage space.

Monthly payment: $7033. 
landlord pays for water, everything else is separate.

It just feels very tight in the beginning before getting ADU gets legalized.

I wanted this property due to location but unsure if it’s worth to risk due to high monthly payment. 

Appreciate your insight. 

This is great! I would like to attend. 

Hello,

Has anyone divided a SFH to create privacy as owner and rent out part of the house?

It's a SFH with 4 bedrooms and 3 baths, I'm planning to section off one area with kitchen and dining and upstairs bathroom and bedroom and leave the 3bedroom and 2 bath for rent. Instead of a family, planning to rent it by room to maximize profit and I can possibly even section off an area and make it a 4 bedroom, 2 bath. My question is, is it okay to add an extra kitchen in the sectioned off area so the SFH will have two kitchens?

Purchase price: $815,000 SFH 4 bed, 3 bath with pool, solar and attached garage

11% down 88k

2% closing costs 16k

Monthly mortgage: $6,012

Plan 

1. 4bed/2bath- Needs kitchen, new room with window and closet- 20k

Rent-

1bed, private bath with utilities: 1400

1bed, shared bath with utilities: 1200 x 3 = 3600

(Current rents in the area range from 900-1500 with utilities)

Total: 5K

2. 1 bed/1bath- my living space

3. Attached garage: convert to 1bed/1 bath: 50-70K.

Possible rent: 1500-1800

Total expenses: 194K

With renters: I may break even along with utilities but no need to pay rent. 

Does this make sense?

Area is between 11 colleges so I'm hoping to rent to college students or young professionals.

Basically trying to create a triplex but with SFH.

Thank you for your feedback.

Hi Jason,

Thank you for your response! 

Hi Peter, 

I don't have the full capital. I was looking into applying for ADU grant.

I checked the crime rate and the area I live in now is about the same but I have more security since I live in a nicer apartment complex with security and gate system.

Do you have recommendation on eviction? 
The seller is offering to cover 4.5 months of rent if tenants do not leave in 60 days but wants to close escrow first before doing that. 

Thank you for your response! 

Hello, Biggerpockets! 

Advice needed to purchase a multi-family property. Appreciate your help!

I found a duplex with 3/2 (1 bedroom unpermitted) and 2/2 (can add another bedroom as one bedroom is huge). With detached 2 car garage (possible ADU, per city, eligible to be converted, how much does it usually cost?)

I plan to live in one and rent the other as I am currently renting for $2350. 

Price of home is 745k in a C+ neighborhood.
Rents for 2/2 (built in 1950s) is about 2300+
3/2 (built 1910’s) 2800+
with 10% down and 40k for renovation.

Monthly mortgage: $4745.77. 

Tenant pays for everything except for water and trash. 

Planning to have property management. 

Is it worth it to purchase this property? It’s not in the safest part of town but I’m thinking cctv and security may help.

Would it be smart to purchase this or wait for a SFR with garage in a better neighborhood and house hack?

Thank you! 

oh and rent around the area looks like around 1200-1500 but since it only has wet bar with no living room or washer/dryer access and street parking. I'm thinking of renting it at 1100 with all utilities included.

Hi! I'm a single professional looking to buy a place in this crazy market. I've looked at a lot of homes with ADU potential. A lot needed work and that's what made me hesitant to purchase them. Interestingly enough, I recently came across a new townhome with ADU (basically a bedroom with a walk-in closet, bathroom (stand alone shower) and a wet bar. I've never seen one set up like that before. It piqued my interest because it would be nice to house hack without the renter entering your actual home. Right now for the plan, the builder will create a separate entrance from the home for the "ADU" on the first floor. The townhouse is a trilevel home. I'm looking into having an extra income while owning my own place and eventually being able to rent the "ADU" and the upstairs area of 2 bed and 2 baths in the future. The "ADU" bedroom is 10'-9" x 10'-10". Asking price is 575k, 8k for ADU conversion of the bedroom downstairs and another 10-11k for solar panels if I decide not to lease it. I live in california by the way. Is this a sound investment or place to purchase? I'm not sure if I can legally rent the ADU as well since there's no actual kitchen. Do I need to provide access to my own kitchen and washer/dryer and garage? Thanks in advace for any advice I may receive from this post.

@Dan H.

Hi, Dan! Thank you! 

I apologize, the calculation was for one rental. I get a little too excited when I see a property I like and go to BP too fast to share my info and get some advice. 

Thank you for the last two paragraphs you wrote! It gave me clarity in making a decision regarding this property.