All Forum Posts by: L. Brown

@Seth Williams thanks, Seth! With respect to due diligence for the basement, what kinds of things should my realtor look into? Anything that is particularly important to consider?

Hello, BP nation! I am under contract on my first house hack (and first home purchase)- hurray! It's a duplex with a tenant in one of the units. My plan is to live in the second unit, have the basement finished so I could live down there, then move to the basement so I can rent out the second unit and completely cover the mortgage. I need to get my GC to walk through the space with me but from looking online, it may cost at least $35k to finish the basement. I'm thinking about how I would use the space once I move out.

Option 1: I could do a basic finishing (to make it live-able) and when I move out, make it a part of the first floor unit rental or Air B&B it
Option 2: Alternatively, I could “go big” with the basement and try to make it a three family (obviously this would require approval from the city).
Option 3: something else I haven't thought of

I'd appreciate your thoughts. Thanks everyone!

@Don Konipol I’m a newbie- can you explain why there’s no deal here?

@Lola Brown the ask is $460k (over valued for the condition its in). He bought it 19 months ago for $335k

@Chris Hopper thanks for your reply. I was thinking the same thing about it being an opportunity, but have been getting a unified no... this would be my first property so I don't want to screw it up (too much). The ARV after renovations is about $520k.

If this were you, how would you structure the deal? Owner occupied? Master lease? Something else?

@Joe Villeneuve thanks, I definitely have thought about moving on, I just don’t want to miss an opportunity and the right deal can be hard to find in my area. But you might be right, especially for the first one.

I am new to investing and would like to house hack. I came upon a property that I initially thought of as a house hack. It is a 2 family and I would live in the in law suite in the basement. Both units are occupied and below market but would still cover the PITI. Sweet!

There was an open house and the tenants were there. They complained about the owner (landlord), and said there was mold in the house and they reported it to the city. They were definitely disgruntled. It seems like there are other issues (Leaks). When I spoke to the owner, he said the tenants threaten him, curse at him and he just wants out. Their leases end in March.

The mold issue would have to be addressed-not sure how much that would cost- and not sure I want live with baseline irritated people.

Option 1: buy the property, House hack, evict current tenants, mold remediate/renovate ($$?), and rent to new people

Option 2: master lease agreement, don’t live in it, improve management, create equity through renovating/renting at higher prices, and buy the property with equity

Option 3: anything else I haven’t thought of!

@Daniel Haberkost ignore my question you answered it already

@Daniel Haberkost why do you wish you had gone conventional over FHA?

Thanks for your helpful tips everyone! Many of your suggestions were really helpful! Just an update, I put the offer in but didn’t get the property, but learned a couple things. On to the next!