Hello! Rookie real estate investor looking for some advice:
I purchased a duplex in Grand Rapids, MI last October (2023). I bought the property at $365k, and its new *estimated* value after renovations is 390k-400k. The mortgage has gotten out of hand due to property tax increases, miscalculated escrow, and an increase in my interest rate from an initial buy down, increasing from $2600/mo to $3200/mo.
I owner occupy the home, renting a room to a friend at $650/mo, and the lower unit rents for $1850/mo - total rental income of $2500/mo. This leaves me $700/mo (plus $200/mo in reserves) to pay myself, which seems high for a “house hack”.
Hindsight being 20/20, I may have bought out of my price range. I am looking to progress my real estate investing career in a responsible and timely way, and it has been hard to save money for my next property while paying this much for my current property.
Any advice on strategies to move forward? Sell the property, buy cheaper, and have more cash to put into another? I am hesitant to sell because the property is in a GREAT area with high-quality renters, and theres lots of growth in the area… But I am open to any advice you may have.
Thank you in advance!
