Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Chris Hanisco

Chris Hanisco has started 3 posts and replied 86 times.

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Milan Mehta:

@Chris Hanisco This is a great strategy and am just adding to the others by saying you should go for it.  Just be sure you can afford to cover the mortgage if it is vacant for 1-2 months.  Living where you invest is a great way to start.

 I can! I will still have a good chunk of money after closing that I can live on for a month or two, plus make repairs.

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Alvin Sylvain:
Originally posted by @Chris Hanisco:

@Joe Scaparra
Thank you for your pep talk! That really helps. I was so worried I'd wake up this morning, look on here and find people telling me to run from this deal.

 Well if it makes you feel any better, RUN AWAY! RUN AWAY!

OK, have we got all the negative chi flushed out of our system? Good!

Remember, in this business, like most others, you have to be cautious -- and bold! How you balance the two is up to you.

 Thanks, Alvin! I keep reminding myself that some discomfort is to be expected. That's how we grow. Sometimes you just gotta take a chance. An educated chance anyway. :)

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Joe Scaparra:

@Chris Hanisco , Since this is your first, take a deep breath and remember you are in control especially with this property and here is why.  The one tenant not wanting to show and the yard they are keeping is making it difficult to market this property. As a seasoned investor, I like the situation.  It reminds me of the second duplex I bought.  I walked in the first side, the tenant had been there for 15 years, but she and hubby kept it immaculate.  I then decided in my mind to make an offer, but then we went to the other side and it was a total disaster.   I was pissed off because I was set to make an offer.  The bad side tenants had a big mess and had unauthorized pets in the unit.   There was no way I was going to accept that tenant.  I gave my offer which was less than asking and it was contingent on that side being vacant before closing. I got the deal.  I am here to tell you right now, you will need to paint the entire interior, patch a few sheetrock holes, replace the flooring and probably get some new appliances.  No problem, those are cosmetic items, assuming 1000 sq ft,  flooring installed about 4k, interior paint 1.5k, and miscellaneous 2k.  In your mind go in thinking 8-10k rehab.  Use that logic to lower the price.  You will be anxious but if it is cosmetic then this will work out great, as you rid yourself of the bad tenant, you rehab the side you move in and hopefully keep the other tenant but slightly raise their rent.  

Put pressure on your realtor to put pressure on the listing realtor to see the other side.  There should be a lock box on the property allowing other realtors access.  The listing realtor needs to realize that they may lose an offer if access is not granted.  This will not go over well with the current owner.

 Joe - So helpful. Thank you! I happen to be very handy. Every home my ex and I owned was a fixer-upper. I can paint, mud and tape - even "sweat" pipes. I'm not afraid to DIY. I love it. My boyfriend is a carpenter, so that helps! I will have somewhere in the realm of $20k in my account after the sale. I expect that some of that has to go towards repairs/improvements. 
My offer will definitely be contingent on seeing the other side quickly. 

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Quito Keutla:

@Chris Hanisco great job with doing your homework, starting out with a duplex is a great way to start. This totally makes sense. Happy Investing!!

 Thank you!

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Victor S.:

has the house been sitting on the market a while? I would pay extra attention to any deferred maintenance items (roof, mechanical, electrical, etc.) hire an awesome inspector that will crawl the space up/down/sideways for you. definitely check the leases and try to get both sides vacant (especially the one with trash all over their yard).  

can you comp this to any nearby properties? are you paying retail or under market at this point?

 The house has been listed for about 23 days. Prices here are high! Not many bargains. I've lost out on a couple of single-family homes, despite offering over asking price with conventional financing (20% down) and no inspections! Competition in my price range is high. 
Property taxes are high too. We don't have sales or income tax here but pay dearly on property taxes. 
I will definitely get a good inspector. And yes on the vacancy! That's the plan. I don't think they'd pay my rent increase anyway.  Thank you!

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Gus Covarrubias:

@Chris Hanisco

Do it! I did and it has changed my life for the better.

 I plan to! If the owner accepts my offer and everything works out, of course. :)

Thanks!

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Scott Wolf:

@Chris Hanisco, first of all, congratulations on opening your options to MF rentals to keep your boys in a good school district, and supporting them.

For house-hacking, (as we call it here on BP), in best case scenario you will live for free, but it seems in your case, you will be living at a similar payment level to where you would be in a single family home. I'm using your monthly expenses minus half the monthly income.  You will also gain a tenant helping pay down your mortgage and the ability to cash flow once you move out (should you choose to keep it). 

Good luck, and remember, you can always make a lower offer than the asking price!

Hi Scott. Thanks!
My mortgage payment would be around $2100 if I get it for what I think I will. ($2300ish if I pay full price of $325k according to my mortgage broker's sheet.) The other side rent would probably be $1600. That leave me with a "rent" of $500/mo for my side to make the mort. payment. A single family home in my price range would give me a mortgage of $1500-$1800 plus utilities on average. I' have more privacy, but I think I like this idea of saving money better. :)
Thanks for the kind words!

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Wes Johnson:

bought my first property when i was 21 and lived in it a few years then moved out and rented it out that was my first "investment". but if i could do it all over again i would ABSOLUTELY have done a duplex. i honestly had a chance to get one. single family is for the birds. the margins are too thin and one major repair can wipe out a years worth of profit. I could've lived in one half and rented out the other. essentially making my mortgage payment nil. and the management would've been easier because i would've lived next door so nothing would've taken days to address. the COC return is a little different when you're living on one half. i just look at it as "i'm living for free or very little, and when i move out, then i'll have two units to rent". think about it in the future when you have both units rented because that should be your plan. i kick myself everyday for not starting with a duplex or multifamily because you can still get FHA financing up to 4 units and in some cases (if they're already rented) the income from the other units can be used, thereby allowing you to scale up quicker right off the bat.

 That's awesome, Wes! 
I feel like I'm 21 again doing this! I'm actually turning 49 this week. Yikes! I've always bought homes with my husband at the time. This is the first time I'm buying on my own while supporting my two teen boys. Adding landlord responsibilities on top of it is a scary prospect, but I can do this! :)

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Ayne C.:

@Chris Hanisco

Dear single mom, you have my heart. I wish you all the best success!! I hope you will come back and update us in a year about how you don't know what to do with all the extra money. In 2 years you can update us on how you just snatched your 25th flip or something like that. ♥️♥️♥️

By the way, I'm in Southern Maine travelling this whole month with my kids, thanks to homeschooling and rentals. Stay warm this week.

 Ayne - That sounds amazing! I would love the freedom to travel like that someday. Thank you for your kind words. The last few years have been tough. I was married for 23 years. My ex turned started drinking and then turned to drugs. Destroyed us financially and emotionally. I'm divorced now, supporting my two teens best I can. I'm ready for a better life! :)

Post: Single parent - Should I buy this duplex and live in half?

Chris HaniscoPosted
  • Rental Property Investor
  • New England
  • Posts 86
  • Votes 75
Originally posted by @Brian Ellis:

I will piggy back what others have said, make sure to see the other unit first. 

I would also ask to have the unit delivered vacant upon closing. Someone who wont allow a showing days in advance tells you everything. You don't want to feel like you are walking on eggshells in your own home. 

I wish you and your family the best, good luck!

 Brian - Yes! I agree! Between that and the condition of the yard (debris everywhere) and large dogs, I'm wary of keeping them as renters. Thanks!