All Forum Posts by: Account Closed

I have a SFH that I am planning on renting out to two separate tenants. The upstairs and downstairs of the house are completely separate with separate entrances. However, since it is a SFH all of the utilities are currently combined. I am planning on renovating the downstairs but am wondering if I can split the utilities if the neighborhood is not zoned for multi family? Or would you suggest to have the utilities be included as a part of the rent and just charge a flat monthly fee that includes rent and utilities.? TIA.

I think this is the perfect time for you to ask yourself what you are trying to get out of your life/career? If you are after financial freedom and freedom of time, is spending hundreds of thousands of dollars and years of your prime time going to medical school really going to give you that?? I think if you are truly interested in real estate and investing then it will be much better for you in the long run to spend that time and money on real estate right now rather than med school. You will be able to propel your life forward rather than drown yourself in debt and even after becoming a successful medial professional, I doubt you will have the type of freedom of time that you can achieve with real estate.

Bryan asked the exact right question that I was going to ask you. How much will the rehab increase the rents by? If the current rent you would get is below market and you know for a fact that the rehab will increase the rent significantly than I think its worth getting it done. If it's not going to make a significant difference in the potential rent you can get then it might be better off waiting. 

@Victor Oben Yes, you can still get deals off the MLS. I have been trying to buy a property in the Atlanta metro area for the past two months. I was also only looking at MLS properties with an agent and definitely did not have my first or second or third offer get accepted. There is very low inventory at the moment especially for small multifamily and so there is bound to be competition. I agree with everyone that said to go after properties that have been on the market for awhile or ones that have come back on the market, those sellers will be more motivated. The most helpful thing to do would be to try and find out why the seller is selling or what will help them out the most, whether its the type of financing, quick close, no contingencies etc. I would also reconsider your search criteria and try to look for properties that have more potential after minor improvements/renovations. I found a SFH with a partially finished basement that has the potential to be its own separate unit with few renovations.

Agree with Cameron and I also definitely recommend @Craig Curelop's House Hacking book! It has everything you need to know to start house hacking and more! 

As far are SFR, you can definitely do it. I am in the process of doing it myself where I bought a single family home with a basement. The basement is currently unfinished, but I am planning on finishing it and living there while I completely rent out the upstairs. With house hacking a SFR, you usually have to compromise on things like privacy, especially if you go the rent by room method and share common spaces like living/dining and kitchen areas. I did not want to share spaces so I found a home with a separate entrance to the basement so that the top band bottom units are completely separated and can function like a duplex. Rent by room method usually tends to yield better cash flow than trying to have separate units especially if you need to add a second kitchen/laundry etc. I think it just depends on what your personal goals are and how much you are willing to compromise.

@Megan Broom Hi Megan, I am currently in the process of purchasing a house hack in Norcross, GA. I was thinking of using FHA due to its low down payment requirement. However, after talking with my lender, I decided to go with conventional because of my excellent credit score that would allow me to save money on the PMI. I could have put down only 5% but I decided to put down 10% to save even more. With a conventional loan the amount of PMI charged is tiered and therefore the more you put down the less the PMI. Also with conventional loan the PMI goes away after you have 20% equity. With FHA it stays on the entire life of the loan, unless you refinance. Yes, you do have to live in and occupy the property for both FHA or conventional loans. FHA has a little bit stricter guidelines in terms of the property you can purchase. It needs to be move in ready and livable immediately. whereas if you were looking at properties that need a little bit of work/renovations then conventional would be your best option. I think ultimately it comes down to how much you have for a down payment. If you have the 5% to put down, I think conventional will be the best bet in the long run.

Yes, you can get a triplex or a 4 plex with either an FHA or a conventional Loan. FHA loans are only for primary residences and therefore you have to live in one of the units so that the property can be considered your primary residence. You have to live in it for at least a year and then if you want to move out, you can always refinance out of an FHA and get a conventional loan. If you get a conventional loan, you do not have to live in the property but remember you will be required to put more down 20-25%. With FHA you can put down as little as 3.5%.

@Joe Splitrock Ah Okay. yeah that makes more sense. 

@Daniel McNulty Yes, I agree that you can do some of the basic financial planning yourself in terms of setting goals and saving but also feel that at some point it might be beneficial to have someone more experienced and knowledgeable with finances to help your structure your investments. I agree with you in having a coach/mentor and especially for me and where I am at with investing at the moment, that is what would be the most beneficial for me. 

@Charles Carillo

I guess you can call them a mentor or coach. But yes, I am talking about a financial planner or maybe "advisor" specifically for real estate. I have heard of some people using them but not sure as to how exactly and what the benefits are and how they differ from just a coach/mentor. Hence me asking the question. 

Hello BP! 

I want to know what your thoughts are on getting a financial planner for someone who is new to real estate and just starting out? Have you guys used one? Has it been helpful/beneficial or do you recommend waiting until you have several properties and a little portfolio built up before investing in a financial advisor?