All Forum Posts by: David Cha

Hi BP

just purchased my first house hack, mande tons of mistakes, but learned so much from the podcasts. I am trying organize my finances and will be speaking with a CPA but and am trying to maximize all my deductions, but I wanted to have an idea of what to expect. 

The layout is a triplex where all the units are the same size, however unit 1 has exclusive access to an unfinished basement, porch and backyard. Does this unit take a bigger portion of the percentage that is deductible, or should I still assume it is a 1/3 split, percentage wise. 

This is pretty much my thoughts exactly, I'm just going to ride it out and not make a big deal about the deposits or the pets since I won't be renewing anyone's lease anyway.

Hey all,

I am in the process of buying a triplex to househack and am inheriting 2 tenants that have pets in clear violation of the lease. It seems like the last PM/landlord was an absentee slumlord and didn't do repairs, but also didn't raise the rent or check in on the property. Both tenants are on 12 month leases which I am inheriting as well, 5+7 months left. I asked one of the tenants about the pet and she begged me not to make her get rid of the pet. 

I'm not some kind of dog hater (I'm bringing my dog) and if the former owner/PM hasn't done anything to them up until this point, is there some kind of implied acquiescence? Like, pet squatting? I would prefer to ride out their leases or encourage them to leave early as I would like to get the units upgraded and increase rents. I don't particularly want any eviction type issues with COVID going on. 

What is the most diplomatic way to handle this? How would you go about the refund of the security deposit for inherited tenants? I have no idea what the condition of the units were when they moved in and those deposits were taken without considering pets. I don't particularly want to fight with someone about their security deposit either. Thoughts?

This is actually a great idea. The convenience of not having to deal with those issues for this short period of time will be well worth the fee. I am in talks with a local property manager but I may hit Kevin M up later. Thank you!

Gotcha, that's kind of what I was preparing for. I think it still would be worth pursuing in this case. It is majorly inconvenient because I would have to move into one unit, then move down two floors in about 5 months when that tenant moves out. 

What is the process for normal termination of the existing leases upon the expiration date? I have other tenants in mind that I want to put in those units that will pay market rate and that I have vetted more than these inherited tenants. Do I just have to send notice to the existing tenants within a certain timeframe that I will not be renewing their leases?  Other pitfalls to watch out for here? What kind of information about tenant history am I entitled to? Rent records?

Hey all,

I've searched for a long time but could not find the answer specific for philadelphia or pennsylvania. Any help out there?

I'm looking to do a house hack and have finally found a property i'm interested in however, it has been on the market for a while, with good reason. The triplex is fully occupied and I wish to occupy the bottom unit due to renovations in the basement that need to take place immediately. The current tenant in that unit has a year lease until August 2021. Unit 3 is vacating in a month and Unit 2 has her lease expiring in December. She's apparently troublesome, according to the other tenants. She refuses to let us see her unit, despite giving property notice. We will see the unit shortly as per the offer agreement however, there are just red flags with this tenant already that are making me nervous and the current owner has not done anything to handle that situation. I could just ride out their leases but it worries me. Despite these tenant issues and some repair in the basement, I still feel like this is the deal for me and want to make the transition as smooth as possible

Does Philadelphia have any good cause evictions or owner move in evictions if I have to go this route? The good cause eviction statute i read seemed to only apply for month to month tenants but i could not find any relating to tenants that have a year lease in place. There is no rent control here and the units are way under rent. Is there anyway i could get either of these tenants out legally/cheaply/inexpensively/smoothly? I believe they may both be breaking a material clause of the existing lease by having pets, which the existing leash states they cannot have. This was witnessed by myself and my realtor as well as confirmed by the other tenants.

Hey Nicky, thanks for the response. I've been running some numbers with units fully rented and it would either be breaking even or i would end up paying a bit because of the 0 downpayment. I"m anxious to move soon and get into a property and feel like by house hacking, I can save up between between 60-90k in 5 years after taking into account vacancy, cap/ex, repairs and misc. Then, use that money to do a cash-refinance so the property will cashflow. What do you think?

Hey all, 

Question about using the VA loan to house hack. This will be my first purchase and i've just been watching as many youtube vids as possible and formulating a strategy. My plan is to purchase a duplex very close to where I work in Philadelphia and live in one unit while renting out the others. I plan on putting down zero with the VA loan and living in the unit for at least 5 years. I'm having some trouble figuring out if this is a good deal using the four square method because I will be living there for a few years and during that time, my plan is to save up as much cash as possible and either do a cash-in refinance for more cash flow or buy another property to live in and rent out my unit. Does this sound like a good idea? Any advice would really be appreciated.

Here is are examples of properties I was considering. How would you analyze the cash flow? What strategy would you use after living there for 5 years? How do you account for appreciation in the analysis?

https://www.redfin.com/PA/Philadelphia/779-N-27th-St-19130/home/38388201



https://www.redfin.com/PA/Philadelphia/5102-Larchwood-Ave-19143/home/85646781

Odie, 

I'm still thinking about househacking with a multifamily but it makes me nervous buying something with zero down, relying on future income (rent) to cover my payments. The VA loan will allow me to do zero down but is that wise? Buying something that is around 350-400k without anything down? Watching the bigger pockets podcast, a lot of the videos say to try to find a wedge deal on a property but that's another concern. The VA inspection says the house needs to be turn-key, move-in ready. I'm not sure really sure what that means.

TLDR:

Should i buy a more expensive, updated multifamily with zero down, relying on future income?

Should i look for a wedge deal multifamily/how will that work with the VA loan inspection process?

Should I just save up more money to put a down payment down, even though I have the VA loan ability to buy with zero down?

Hey guys, thanks for the replies. I've been listening to as many podcasts as possible and keep going back and forth with what my first purchase should be between a condo, single family or multifamily. Especially with all the uncertainty going on with the virus and what that will do to the housing/rental market. I'm also rethinking about renting to friends too haha, thanks!

Can anyone give me advice on doing a BRRRR strategy with the VA loan? I guess what I worry about is trying to buy something that needs work and using the VA loan. I've heard the VA loan inspection is more stringent than other properties and it needs to be "turn key" in order to be approved. Also, with the BRRRR strategy, what are options to finance the estimated repair costs?