All Forum Posts by: Jalah Gray

I'm feeling very frustrated and discouraged. I'm currently a renter in the process of buying my first duplex to house hack. I have a duplex under contract in Arlington, TX, but after meeting with the inspector today I am not feeling confident about it all. The seller wants full asking ($250K) for it and it needs a lot of work, which they want the buyer to take care of. 

It has verified foundation issues, which it's had for many years. Piers were put in to repair the foundation in 2017 but more movement is already apparent since then. There's evidence around and inside the property that water has been inside it several times. There are concrete sacks leaning against the outside walls in the backyard and the flooring on the vacant side is bubbled up in ripples, with pieces of it coming completely up. The inspector believes there is a crack in the foundation under the house and water is possibly coming up through the floor as well as through the walls during torrential rains. The recent foundation inspection report provided by the seller shows that several preventative measures are needed to protect the foundation from further damage; including new and added gutters, french drains, and a curb poured alongside the occupied side of the property. 

These are just the foundation concerns. It doesn't include the fact that the occupied side needs a new HVAC in the attic (the tenants have window units in the house because the air won't blow cold), and the entire occupied side needs a full cosmetic update including 2 bathrooms and kitchen. Also, both fireplaces need to be repaired inside and various places outside the house where boarding has come apart from the brick because of water. 

I was okay with the cosmetic updates needed and even installing new gutters and a french drain, but it looks like it's going to take more than that and more than I can afford. I can't buy this property at this price and put all this money into it. I know inspectors' jobs are to find every little thing wrong with a property and I have taken that into account, but I'm honestly overwhelmed and uncertain what I should do. I already know the seller doesn't want to do any work on the property, so I guess I need to figure out what my new offer should be. I would appreciate any advice. Thank you!

Thanks, @Anna Catron! I'm excited. It's an adventure, for sure! I know what you mean about catching yourself being "judgmental". I think it's human instinct. Thanks for your encouragement. I sure wish I had gotten into this game a LONG time ago, but I'm trying not to focus on that and instead use all my skills to dive into it now. I have SO many questions about STR in this area, so I just keep seeking out answers and advice. As I said, I'm a sponge right now; soaking in all the knowledge and wringing out the naysayers! HA!

I'm looking to buy a house in this area and rent out part of it on airbnb. I'll be living in a small part of the house for probably just the first year. I'm a minimalist and don't have a lot of personal stuff, so this doesn't bother me. I'd love to hear from anyone who's had experience with STRs in this area, or more specifically has experience house-hacking with this strategy. I'm completely new to this, so I'm soaking up advice! Thank you!

Has anyone had experience with IMPACT Real Estate Investor training? I'm in the DFW area. I went to one of their networking events and it was great. 

Thank you, everyone! I really appreciate the input. PMI is something I've been really wanting to avoid, to the extent I was willing to put A LOT of my own money down on my first property, but I've since learned that I don't need to put that much down.

@Daniel Haberkost, thank you! I will definitely ask my lender about the 5% down owner-occupied conventional loan option as we've already been discussing options for getting out from under PMI.

@David Flores, thank you! I have not heard of the FHA 203K loan, which might have been a great option for one duplex that I was looking at that needed new siding. I'll ask my lender about it.

@Daniel Haberkost

Looking for my first investment property. I will be a first-time homeowner. I want a duplex to house hack. I plan to live on one side for at least the first year. Need advice on the best financing options? Is an FHA loan the best way to go? Any advice would be greatly appreciated!