Hello everyone,
I am a new real estate investor and I am currently house hacking a 2 multi-family house. I have been browsing for my next property and I came across a raised ranch single family home with 2 separate units that could be rented for about $2,000 each and I would be cashflowing roughly close to $500/month. The downside is there is only one electric meter/panel for the whole house and there would be one bill for both units which includes heating/Central AC/electricity and so forth. Another problem is that The house is taxed as a 2 unit dwelling in the city hall because the city is aware that they are renting 2 units and the seller mentioned they tried converting the house to a multi-family but the city board didn’t approve.
The pros would be the price, since multifamily houses sells for a minimum of $600k in the region I would like to invest in. Also I am concerned if the city would continue to allow BOTH units to be rented (since they are being taxed as a 2-family). Also how could I divide the electricity bill with the tenants? Or should I just charge more for the rent to include those a expenses.
Should I go for it and cash flow on a single family or buy a legal multifamily (not cash flow initially bc of the high prices)
Any feedback would be greatly appreciated from seasoned investors.
I am in Everett, MA
