All Forum Posts by: Jesse Hyder

@Lync Jones

1) Paycheck to paycheck... keep saying that over an over again until you are resolved to not be in that situation. Have your wife say it too again and again. I know you dont want that, noone does. Will your wife be 'happier' that way? Well we barely made ends meet again but our house is so huge!

Dont be this guy

https://www.youtube.com/watch?v=PV_YAeXOSiw

2) Have you considered also living IN the multifamily you purchase? I'm not kidding either. I know here in Boise there is a 4/1 1400 sq ft with 2 700sqft apartments in the basement. I dont know how 'small' your current house is but having some one else pay for your primary home is always a score. Additionally you can find things like lots with multiple homes on them or a property with an accessory dwelling unit over a garage for extra income.

Are you willing/able to move to SLC or Provo anywhere in between? I'm in Boise now but I lived in SLC for 5 years :-)

Hi @Sam Leon I've looked at quite a few properties with Mother in laws/accessory suite/Accessory dwelling unit whatever you want to call it. My biggest beef with these is always parking... When they say mother in law they really are not kidding its nice and cozy with the parking situation. Then my 2nd issue is how the units are 'separated' or to be more precise NOT separated! Shared utilities, Shared storage/laundry facilities. and so on. BUT if you can find a SFH with an ADU on top of a stand alone garage with seperate utils I feel you are on the right track at least thats what I prefer to see in a mother-in-law

So you want passive income alright no problemo. Think multifamily not single units for cash flow! IMO Resell this baby for a profit then find a 4plex at $100-200 a door. Now the cash is really flowing. The idea of cash flow on single units seems kind of bad to me and misses out on economies of scale. I know that 4 units isnt that much scale but once you jump to bigger complexes it matters. Maybe thats not the direction you are interested in going but if you want to 'go with the flow' thats it. LOL

I'm a little confused. @David L.

Lets imagine you can get this for your asking price? And you are projecting $100 a month in cash flow. for $1200 a year in profit. YET other props that are not distressed that are similar are selling for 160-170k? So you'll wait around for $1200 after a year instead of 30-40k profit on a resale and its mostly cherry already? Please explain because honestly this seems like a big waste of time otherwise for 1200 bucks a year. Do you plan to live in it some day or something?

@Adam Baker as its been said I wouldnt 'max out your finances' either. But my first home was a 4-plex and its a great idea. But be prepared to either become a landlord or budget in a management company. I recommend the latter over the former myself. Read a bunch on the forums and budget in everything, and then 10% more on top of that! :-D

I live in my unit for free and get $150 cash on top of that as well every month after all the bills are paid. It was a hell of a score.

@Eric Black

and anyone else interested in my wacky idea. I've been going over this property and its 'possible' to make it a duplex but maybe not...LOL it is currently zoned R-3 multifamily residential, its right next to downtown. Woo no rezoning needed! :-o and under the zoning ordinance I see the following.

The following standards apply to all new dwellings and remodels of existing dwellings.

Minimum Lot Dimensions for Duplex

(a)

A minimum lot width of 36 feet for interior lots, 46 feet for corner lots, and a

minimum lot size of 2,000 square feet per dwelling is required

when alley access is available

(b)

A minimum lot width of 37.5 feet is required when no alley access is available.

The property falls under (b) as there is no alley access and the lot is only 3049 sqft and it is wider than 37.5 feet over about 60% of the lot

But then under parking it says...

OFF-STREET PARKING REQUIREMENTS

Dwelling, Duplex Per dwelling unit General 2.0

(7a)

Each dwelling shall be provided with off-street parking.

But the property currently has ZERO off-street parking. Even as a SFH...

So I guess the question is why is it already zoned for multifamily as a SFH and there is no off street parking for the SFH? Probably because of its age 1915 its grandfathered in. If nothing its been a good look into my local zoning laws.

Should I even bother looking into this further? The impossible to build parking is probably why its not a duplex already. The zoning ordinances are kind of mind bending to read. but why is the density already R-3 multifamily...for a SFH?

@Eric Black

I've never really entertained the idea of flipping before but after joining biggerpockets I've come to imagine all kinds of ideas I'd never have thought about. So thanks BP!

Now on to my idea...

There is a single family home for 130k its a 3/1 it looks great inside and out. The basement is finished already. 1 room and a big bonus room in basement.

But the 'problems' with it are its on a mini triangular 0.06 lot, no yard, no garage, street parking only. No family will buy this place its been on the market for over a year and is surrounded by other duplexes that sell for 220-230k blocks away that I have toured and are nearly identical well if this was converted anyway. O.o Now either I'm missing something here or I'm starting to see things I have not before. I'm guessing the former over the latter. HA!

I understand I'll have to add kitchen, bathroom, split utilities, rezone.

Currently rents for 1k as 3/1 SFH if it was broken up could go for $750 & $600

Am I hallucinating or is this even something to consider doing...

@Jacob A. Sweet job on the renovations. I think its going to sell for sure here in the spring, but what about worst case have you thought about renting it out for a while 6m-1yr? I only ask because at some point with holding costs eating away at your $ every month your profit goes down. I see a few houses here in Boise that have had great renovations and they sit and sit and sit for months on end I drive by 2 of them every day. They still look great though to be sure, but I know someone is losing money on them just being vacant like that. Just curious if you had entertained the thought. But then it wouldnt be a flip! :-D

@Kris Belco Looks like you've got it pretty covered sweet job!

The but I didnt see utilities in your list of things that are covered. Maybe its part of the HOA or maybe the tenant pays for it. Water/sewer/trash and possibly things like cable TV for the tenants. In our area there is a weird rule where if they dont have cable TV they are allowed to put up ugly dishes for sat TV on the building... so well worth the cost!

Thank you for posting this story, its one more reason why every day I know that pricing in the cost of a management company into my properties is the way to go every single time.

So let me ask you this question.

Are you in the business of 'helping people out'?

Or are you in the business of running a profitable multifamily?

Sorry to be all cold hearted about it but at the end of the day what business are you in? Maybe that will help to give you an answer.