All Forum Posts by: Brandon Bell

I have a side by side duplex I have been house hacking for the last 4 years and I am unsure if I should keep it or sell it. I want to move to a single family (maybe build the house) but I don't have a ton of money saved (only 15k) because most of my money has been going into fixing it up. I bought it for 265k and I could probably get 450-500k. But I have been looking into splitting the duplex into two condos (yes I know it is a lot of work) and I could probably get 325-350k for each, netting me 650-700k.

Number:
* Mortgage interest 2.5%
* Mortgage principle 240k
* PITI $2100/month
* Rent 2200/month (current tenant on a two year lease)
* Potential rent on my side $2400/month
* 100k HELOC at 11% (fixed) (not currently being used)
* est additional cost to split the dueplex 75-100k (conservative, probably less)
    *new siding 30k (just put on a new roof this year)
    *legal 10-15k
    *fire proofing 15k
    * 15-40k for stuff I am not aware of or underestimated on

* some of the appreciation is external from the home
    *big grocery store put in 3min away
    * newly paved road in front of my house
    *a building that was falling down across the street has been torn down
         * Still a vacant lot with the foundation exposed and fencing around it (so more local improvements are on the way)

Part of me wants to take the money and run but man I love that 2.5% interest rate and the $2000/month cash flow (including taxes and capx)
I have thought about 1031 exchanging into more rentals, but I would like to pivot into storage units. Let me know if I am missing any numbers that would be helpful.

Hello All,

I have a duplex that I am house hacking and I just had it appraised for $425,000; meaning I have approximately $175,000 of equity in it. I was initially going to do a cash-out refinance and pull around $80,000 out, but I would have been going from a 2.5% interest rate to a 4.7%. A local credit union is offering me a 100% LTV HELOC at 10% fixed interest (5 Year Draw - 10 Year Repayment). They are also offering 90% and 80% LTV with slightly lower fixed interest rates.

I am planning on moving this summer so if I want to tap the equity using a HELOC I should do it sooner than later. If I get the HELOC, I would probably use it to help with the downpayment on my next house hack (assuming the numbers work out) and get my first Midterm rental. So essentially, my property would become a hard money lender for me lol.

I think it is important to note that this house hack is my only investment property and contains the majority of my wealth. I have been extremely blessed with the crazy appreciation over the last few years from covid, the town cleaning up my street, and a lot of local development. 

I've never really heard anyone talk about a 100% LTV HELOC, so I'm curious if others would jump at the opportunity or consider it too much of a risk.

Thanks!  

For a friend but it’s easier to tell a story In the first person.

TLDR: My tenant is wanting to break the lease 2 month early. Are they contractually obligated pay for those two months?

Moved to another state temporarily and while I was gone I leased out my home for the year. The tenants knew I might not renew the lease after a year and and so they started looking for another place when I officially told them I was coming back. They found a place they love and are wanting to break the lease two months early. I know in most instances the landlord would keep the security deposit, but I have people telling me that they are contractually obligated to pay for the whole year. I hadn’t heard that before and wanted to hear from other random people on the Internet what they thought. Is that something I can do, and do most LL just keep the security deposit because it’s easier?

So I was screening for tenants for my rental, and this one family met all my criteria. When I went to show them the unit, I found out one of the renters was in a wheel chair, this unit is not wheel chair friendly! It’s a gravel drive way, multiple steps to the door, and no bedrooms on the first floor. They seem really interested regardless and where asking when they can move in. I’m worried that the person is going to get hurt and I’m going to get sued. I feel like I’m also not allowed to not deny them based off their disability, but like I said there is no wheel chair accessibility! I have no clue what to do, any help?