All Forum Posts by: Casey Murray

@Lucas Hammer If you are going to buy another 2-flat as your primary residence and rent out your current resident as an investment property, I believe banks count a portion of the rent from the future primary residence as income (therefore lowering the amount of money you need for the down payment). Also, depending on if your current property is "seasoned," the banks would also count the rents as income. I would check with a MLO experienced with investment properties.

@Alexander Alguire I would recommend knowing the rents in your market. Certain properties don't seem like a deal but if you know an area is up and coming for various reasons (job growth, population influx, gentrification), then you could land a deal. It may not significantly cash flow right away but you can "force" the appreciation while the area is also increasing in demand which equates to higher rents and ROI.

@Gustavo Munoz Castro I second what @Dan H. suggested about Escondido. I'm actually from Escondido but live in Carmel Valley now. You could find more of the working class areas going inland. Along the 78 East freeway you have San Marcos and Vista and going 8 East you have La Mesa and El Cajon. I feel you get the most bang for your buck with the inland properties. 

Pull out the $75K and re-invest in another property with a good ROI. Mortgage rates are historically low so it's an ideal time to take on long-term debt at favorable rates.

There's a huge difference between house hacking a multi family (MF) compared to a house (SFR). House hacking a SFR with roommates (i.e. tenants) seems really challenging and I would not do it. I agree with @Sarah D. and do it before tenants move in. Or consider buying a MF property and house hack each unit one at a time. Best of luck.

I agree with @Bruce Runn on house hacking. If you rent out your current duplex for 1-2 years, the property will be considered "seasoned" so you can count a certain percentage of the rental income as income when applying for your second mortgage (plus whatever equity you have in the duplex). A mortgage loan originator should be able to further answer your questions. Best of luck.

@Lance Brown Everyone on this response seems to be a fan of house hacking and rightfully so, it is powerful. I completely agree with @Joseph Rice and would emphasize knowing your market rents. Doesn't make any sense to renovate a unit if the market won't pay more in rent. Best of luck.

@Jesse Sasomsup Never heard of them. Good luck.

It's tremendously important. Real estate is one of the few (if not only) assets that allows the owner to depreciate an asset that historically appreciates over time. 

@Anton Watt I agree, MF is my preferred method. But if a great deal is possible, I would also go with SFR. Equity is equity regardless of MF or SFR.