All Forum Posts by: Jake Collins

Hey all,

So I am currently looking to offer on a home that has a basement divided up into two units (A studio and 2BR) with a main home on top. The two units in the basement have full baths and full kitchens already. The home is in an area zoned for Single-Family but allows for Accessory Dwelling Units (ADUs). The issue is that the code of ordinance specifies only allowing one ADU. We were really hoping to buy this property and rent out the basement in two separate units either on AirBnB or longer term.

At this point, I'm wondering if I should still offer since the numbers are only where I want them to be renting out two units. I figure I could make half of it an ADU and then potentially rent out the other half of the basement to my "roommate" even though they have their own space with a separate entrance. Not sure if that's a bad idea and would like input. Any ideas or advice for this situation? Thanks in advance!

Hey BP,

I am currently looking at buying a home with a detached garage apartment and living in one while renting out the other. Thinking long term, after I move out I would like to rent them out separately to maximize cash flow. Only issue is, I wonder how difficult that might be once I move out. Have people had trouble selling tenants on renting a house with a tenant in the (garage) apartment behind them? I live in Houston where this setup seems relatively common but am not sure if that comes with tenant issues around a shared yard, etc.

Thanks!!

Jake

Thank you for the great advice and story Matthew, I'll pursue that!

Hi everyone,

I am a new investor looking to jump right in by getting a 203k loan and rehabbing my first property and future primary residence. I'm in a lease for about six more months and have found a property in an area I like that has two garage apartment units in the back with a main home in front. The garage apartments in the back are in great shape, but the house has no interior pictures and is in original condition from the 30s or 40s. So, I'm expecting a large rehab. I spoke with a lender today and she mentioned an appraisal will have to be done as part of the FHA 203k loan process (where I'm getting the money for the rehab) to determine the ARV. I think fixed up, the house will look great and will cash flow with the two garage apartments while I live there, followed by great cash flow after moving out. All this begs the question, how can I find comps for a 3-unit like this and how can I differentiate ARV estimates vs comps in current condition? I'm in the Houston, TX area and there are nice fixed up properties in a (nicer) area on the other side of downtown, but not a ton right where I am looking to buy. How are comps done for multi-family and what can I expect the appraiser to be looking at?

Thanks BP! Really hoping to make this my first deal if the bones are good!

Hey everyone,

First post to BP and very new to real estate investing in general. I am fresh out of college and started a job in the oil and gas industry. I currently really like my apartment but am looking to eliminate or significantly reduce the expense in my next place. I still have about 8 months on my lease so I have plenty of time to learn in the meantime. I want to get into real estate investing and believe I will have the funds and ability to house hack in 8 months. Immediately following, I hope to start investing in real estate more actively and quickly. My question is, is it possible to house hack in the Houston area? Properties near the heart of town look to be very expensive (Montrose, Midtown, Heights, Wash Ave) and I am not familiar with the other areas of Houston since I just moved here. I am hoping if anyone can point me in the right direction for looking for a future house hack. I do love living within the loop but if that's not possible in a house hack I would be bummed but not surprised. So, any locations would be great but it needs to be safe as I have a serious girlfriend that could very well be rooming with me.

Thank you in advance for any help and I am excited to learn more about real estate and would appreciate any advice anyone could offer! I can also assist with some basic housework if that would help you out!