All Forum Posts by: Eric Samuels

So I have a flex space in one of the units of my duplex that can easily be turned into a 3rd bedroom. It would need a closet and the stacked laundry unit in it would need to be made accessible outside. To do that I could cut a hole in the dry wall and turn it 90 degrees so people can use it from the hallway but there is a light switch for a nearby bathroom in the way so that would need to be moved into the bathroom as well. First contractor said $1,000 to add the closet, $2,000 to move the laundry unit and time + materials for the light switch so it will most likely be more than $3,000. The second guy only saw photos and quoted me for $2,500 but was actually unaware of the additional light switch move. Was still $2,500 plus a potential $600 for materials total after informing him. A fellow investor of mine took photos and sent it to him. What would be my safest option here? I do think the contractor who came in person seems like a trustworthy guy but it’s the first time I met him.

Lastly, should I be the one to provide a contractor agreement for them to sign before getting this work done? Should I request their contractor licenses? Just want to make sure I’m protected given I haven’t hired a solo subcontractor in this way before.

Thanks for the advice.

@JD Martin

I believe this is what I did the first time a tenant asked me this and I think it makes sense to do this again. Full money in hand for first month before the first month and pro-rate the second.

Thanks,

I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?

So when I bought my first duplex in Fishtown end of September 22, the deal worked well with the true property tax based on the houses value but the house was assessed right before I purchased it and was overpriced (had the house value at $500k when it’s more around $391k) I hired a company suggested by my realtor to help me submit the appeal right before the deadline and it’s been crickets ever since. I’ve followed up with them several times throughout the year only for them to continue saying the city is backed up. Do I have any other options? What happens if I don’t hear back within a year and then I have to pay the higher price for property taxes again while not receiving any of the difference from overpaying for the past year?

Also I had to pay in full as part of closing, is it right to assume it will be a monthly cost moving forward? Will that be paid to my mortgage company or directly to the city?

Thanks,

So the first year house hacking my duplex is almost up and to account for the amount of work needed on the property I decided to pause my contributions to my roth IRA and TOD accounts I have with a financial advisor. I think total I was contributing around $600 a month. Right now my property is vacant besides me and am in need of a tenant but I'm working on that. I reeeally want to get back to the point where I'm maxing out my investment vehicles I have with my advisor but also really want to continue contributing to improving this duplex because it's old and still needs a fair amount of work. One year off from contributing to my roth is definitely affecting my compound interest but budget wise once I get a tenant my savings rate will go back up to around $1600. Would it be best to contribute to my roth or should I continue putting money back into my duplex?

So my duplex in Philly is currently vacant (other than me since I’m house hacking) and i’d like to get the other unit rented out as soon as possible. I didn’t know until much after closing on the property that it did not have an official CO and therefore no rental license. I’ve got all of the necessary items for a CO other than architectural plans. Once I get those then L&I will come out to do their own inspection. My reserves are kind of low right now and the best quote I received for architectural plans, which is a requisite for obtaining a CO is for $1800. Would it be a bad move to rent it out first and then pay for architectural plans after?

Appreciate the help.

@Josh Humbert I’m also an over thinker and I ended up jumping into a less than ideal deal. I’m house hacking a duplex and it’s currently not cash flowing (yet) and there were SOO many unexpected issues. It will turn into a great deal once I do all of the forced appreciation I think it needs and am waiting for my appealed property taxes to be accepted. Once those two things happened I should be able to cash flow around 200-300 a month. Pulling from my own experience. If you’re going to pull the trigger on something less than ideal, at least try your best not to make assumptions about anything. Be as curious you naturally are about prior research but in the details of the deal and process of the improvements after you close.

That said, after I pulled the trigger on mine I realized how much more profitable it would have been to either have been more conservative with my numbers or to have waited longer and have found another deal. Waiting isn’t a bad thing and TRUST ME, the anxiety within analysis paralysis is nothing compared to the stress, anxiety, regret and anger of getting into a less than ideal situation and feeling stuck in your first deal.

So I locked in my first house hack last September and it could have been much better. It's an old duplex (1875) in a decent B neighborhood. 1 bed 1 bath in one unit and a 2 bed + flex space (laundry/storage which could upgraded to full br). I got it for $391,500 on an FHA loan 5% down with an $8k credit. Mortgage is $2928. 1br unit can rent for $1200 after fixing a few things and the 2 br should rent for $1800. I appealed my taxes paid upon closing since the assessed value was $500k and it appraised for close to the purchase price. After appeal my monthly mortgage should drop $160/month but I have no idea when that will go through. There have also been a **** ton of expected and unexpected issues with the house so I really need to increase my reserve to further protect myself.

I still want to continue investing but my current funds are nowhere near where they need to be to consider using my own money to get into the second property. Was thinking of wholesaling to earn the capital to get into my second deal but am aware that takes a lot of time on top of the time i’m spending managing/improving the property and my full time job but I really want to put myself in a position to purchase another duplex next year or end of this year. Does anyone have any thoughts on how I should get into the next house hack?

 Thanks Chris. That is a great reminder. One concern I have with sticking to a specific plan is also knowing when to pivot. I also hear great advice on the other side of things where if something goes wrong, being able to pivot quickly between strategies can be a good trait to have as well. Do you have any thoughts on that?

Through all of my research and networking the most valuable skill in real estate continues to be the ability to find a deal. Whether that’s for wholesaling or for other strategies, everything seems to lead back to finding deals. If you’re good at finding deals then you’re bound to build wealth. Does anyone agree?