All Forum Posts by: Eric Luzier

Congratulations on your success!  The progress you have made in such a short amount of time is truly incredible.  Thanks for sharing your wisdom and giving us less established folk some inspiration to keep going.

@Greg Scott @Shain Ismailovski Thank you both for your responses!  I have an email from my tenant stating when she intends to leave, but I will write up something for us both to sign, to be on the safe side.

Hi everyone,

I recently purchased my first investment property, which is a duplex that I am house hacking.  I inherited a tenant with the property and gave her notice that I would not be renewing her lease, as I plan to move into her unit upon her moving out.  Her lease was supposed to end March 31st, but she asked if she could end her lease early (February 15th), and I told her I was okay with that.  With ending the lease early, are there any specific legal steps I have to take, or is it just a matter of returning her security deposit and sending her on her way?  I want to make sure I am doing this all correctly and ensure a smooth transition - any advice is appreciated!
  

@Sheryl Sitman Thanks for your response.  Sounds like it will be worth it in the long run to convert!

@Matt M. Thanks for your response.  Great to hear that the oil has been mostly working out for you.

Thanks everyone for your responses.  The oil tank is not underground and it is available up the street, so that is a plus.  We do plan on holding on to the property indefinitely, so I know the smartest long-term decision is to convert.  At this point, our final decision is going to come down to the price, since we are currently renovating our duplex as well.  At least we know we can always wait to convert to gas down the road if needed.

Hi everyone!  My husband and I just went under contract with the single-family home that is next door to the duplex we are currently house hacking.  We weren't really planning on purchasing another property right now, especially a single-family, but the numbers work and we believe it is a great opportunity.  The house does need some minor cosmetic remodeling, but we are also concerned that the property has oil heat.  Neither of us have experience with this type of heat, but we know that many home owners have converted from oil to gas, due to cost and efficiency.  We do not want to put a lot of unnecessary money into this property.  Has anyone dealt with oil heat in a rental property before?  Was the oil your responsibility or the tenant's?  Also, what are your thoughts on whether or not the conversion is worth it, overall?  

Thanks so much everyone!

I really appreciate this share and your analysis of the article.  Unfortunately, the model that most of our parents have given us does not align with the current costs of education, housing, etc..  Most don't realize that we have have to turn to other solutions, and sometimes be creative, to be able to "make it" today.  As a Millenial myself, I am thankful I discovered the FIRE movement and abandoned the entitlement mindset.  With the resources and information available to us, I feel like there are just no excuses anymore.

Investment Info:

Small multi-family (duplex) and house hack

Purchase price: $174,000
Cash invested: $35,000

This property is a bungalow, which includes a 2-bedroom unit on the main floor and a small, 1-bedroom unit on the second floor. My husband and I moved into the first floor and inherited a tenant on the second floor. When the tenant’s lease is up, we are going to move into the second floor, as the first floor will generate more rent. We also plan on renovating both units.

What made you interested in investing in this type of deal?

This is my first real investment property, other than my condo that I just sold, which could probably have been considered a live-in flip. My husband and I thought house hacking would be a great way to dive into REI and reduce our expenses.

How did you find this deal and how did you negotiate it?

We found this property on the MLS. The initial listing price was $169,000 and there were multiple offers right away, so we decided to come in over the asking with seller concessions.

How did you finance this deal?

Conventional financing with 20% down

How did you add value to the deal?

We plan on adding value by updating the kitchens and bathrooms, and installing luxury vinyl flooring throughout. The house already appraised at $209,000, so I think we are in a good place starting out!

Lessons learned? Challenges?

So far, everything has been going smoothly *knocks on wood*. I am anticipating more challenges when we begin the renovation and have to deal with finding tenants.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My husband, Michael Morrow, represented us. We are in South Jersey if anyone in the area needs a realtor!

Congratulations and good luck from a northern neighbor!