All Forum Posts by: Josh Silvester

Hi everyone! I am currently under contract for a duplex in a rural area marked for development.

There are 2-3 huge commercial real estate properties being built within the next couple of years (currently under construction). This property is 5 minutes away from a major university. I am very new to REI and would like to know if this is a great opportunity to buy in an up and coming area or if the residential properties will negatively impact my ability to rent out my other unit. Open to all advice, thanks so much!

Hi everyone! I recently posted here but I am currently under contract for a duplex in a rural area marked for development.

There are 2 huge commercial real estate projects being built within the next couple of years (under construction). This property is 5 minutes away from a major university. I am very new to REI and would like to know if this is a great opportunity to buy in an up and coming area or if the residential properties will negatively impact my ability to rent out my other unit. Open to all advice, thanks so much!

Curious if there’s anyone out there that’s recently bought a home with a crumbling foundation. Specifically in CT it’s a hot topic so would love to hear anyone’s experience. Were you able to negotiate with the seller? Did you just walk away from the deal? Government reimbursement? Etc.

 Thanks!!

Ben, scrolling through some of your posts has given me a ton of confidence in my similar situation. I’m in the red hot market of CT and just went under contract today for a duplex near a college. My plan is to rent to students to try and get top dollar for rent. I had to offer 19% over asking to get this under contract and after renting 1 of the units, I’ll be spending a little over what I currently pay in rent. Of course I’m nervous that I’m pushing it too much and contributing to this insane market but at the same time I know it’s a long term play and once I can rent both units, the cash flow will be there along with all the other benefits of owning that you mentioned. 

Can’t help but feel like a complete idiot as a first time buyer in this market but nervous and excited at the same time!

For context, I’ve been actively in the market for a small multifamily for about 7 months now. Been rejected, beat by cash and higher offers a bunch of times. I am now under contract (first time) for a duplex I will be house hacking 7 minutes from a major university on 3 acres. The reason I feel like a sucker, we’re 80k (19%)over asking 🥲. We have some inspections and appraisal contingencies and I’m a little worried the appraisal won’t come through as comps are selling around 12-15% over asking in the area. We have an appraisal gap but I’d rather not have to fork over that capital so I can do some minor remodeling and there’s still a possibility our gap may not be enough. The seller definitely listed low to get a bidding war. Curious on peoples thoughts if I over stretched or if this is a “good enough” deal to get my first house hack in this market.

Numbers for this property:

430k PP for duplex (3/1.5 and 2/1) on 3 acres

Rent for bigger unit= 2500-2800

PITI + PMI = approx. 3500

Maintenance/vacancy/trash etc.= approx. 700

My monthly cost for living in one unit= approx $1800 (which is what I pay to rent right now).

After a year I can rent the other apartment for 2100-2400. Bringing income total to 4600-5200 to cash flow around 800 before doing a hopeful refi if rates drop 🤞🏾.

Any input is greatly appreciated!

Thanks for the response! Unfortunately, they put in the listing they don’t want any escalation clauses so it wouldn’t be an option for this one. The listing agent said they have offers 10k+ over asking and more on the way with higher down payment. 

Hi everyone, my names Josh and I am looking to get into my first property by house hacking. Obviously the market is tricky at the moment but I am in deep thought about a triplex in my area. I would be offering about 25-30k over asking to stay competitive with other buyers. In the first year of living there, my expenses would be breaking even from what I currently pay in rent (about 1400). After a year of living there I could rent out the additional unit along with the other 2 to cash flow only about $50-100/month. I am afraid that my margins are way too tight on this property but at the same time I’m hopeful interest rates will continue to go down so I can refinance and cash flow substantially more ($700-1000 with increased rents and refinancing). 

My question is, should I put in the “overpay” offer for this triplex knowing that they are extremely hard to come by and I won’t be legitimately cash flowing for at least a year maybe 2. Or wait for something else? 

Also worth noting, I am setting aside $450/mn in Cap X because this property will need a new roof within 5 years. Without this added expense my numbers would obviously be much better with this market.