All Forum Posts by: Mike Albrecht

@Ben Fernandez Thank you 🙌

@Ben Fernandez Thank you for your detailed response!

Even after years of podcasts and reading it sounds like I can do a better job with adjusting the numbers and planning. 

At any rate, I will need to determine if I am OK with negative cash flow for likely 6-12 months before being able to raise to market rent(and even still may be near break-even or negative depending on expense/capex calculations).

I will have to re-read your post a few times to make sure I comprehend it all. At the end of the day I can start building equity with loan pay-down, and hopefully with appreciation as well(and some tax benefits).

Quote from @Corby Goade:

FHA will require that you occupy one unit within 60 days, so you can't renew that lease.

What kind of W2 tax relief do you need? You'll need an savvy CPA to walk you through that process. There are a lot of strategies and much of that depends on what type and how much income you have. 

We need even just the basic deductions of home ownership(then later turning this into a sole investment property) as my wife & I have only been taking the standard deduction each year and usually owe(we have lowered the amount we owe increasing 401k contributions), and pending a new promotion within a year, we will make significantly more W-2 income.

@Drew Sygit Assessor estimates 2025 taxes at $1,460 or $121/month

@Drew Sygit

-Zillow shows a duplex on same street(cookie cutters) @ $1,300/month but is not as updated inside as the property I'm interested in so imagine I can get a bit more.

- I used an estimate for taxes/insurance using ChatGPT data but need to check County Assessor

-Not worried about Section 8- simply uneducated on any requirements above/beyond a typical tenant and how to go about keeping tenant and later increasing rent w/ S8.

Quote from @Andrew Kubik:

House-hacking is a great way to get into real estate. I actually have a duplex and I ABnB the other side. It's super rewarding. Generally with FHA financing, you'll have to move in within 60 days of closing. I also wouldn't buy down the rate in this environment. You might able to refinance later on.

Thank you for the reply.

I will research more on the 60-day move in period(I’ve read that before but also some information about keeping current tenants until lease-end, particularly Section 8, but I am new to this). 

In the event rates do not go down, do you feel it’d still be a waste for a rate buy-down? I know we can’t predict the future. 

Here is the Updated Analysis IF Rents are increased to Market Rate (again, no Vacancy/Capex/Maintenance factored in, Nor lower FHA rate/buying points(left @ 6.5% interest) https://www.biggerpockets.com/analysis/rentals/407e071b-0cf5...

TLDR: is that it does not meet the 1% Rule nor 50% Rule & likely to Cashflow Negative for a while with current rents, but looking for advice as I need W2-income Tax Benefits and my first investment.

Duplex Status : Built 2006 -3Bed/2Bath Each Side w/ A) 6-month Lease $1,250/mo one side & B) 12-month Section-8 Renter $1,250/mo 

Here is my Current Analysis using CURRENT rents w/ FHA 3.5% Down Payment estimating 6.5% interest rate but I will likely buy points up to a 1% if possible) https://www.biggerpockets.com/analysis/rentals/682608db-8ce9... (Note: I did not factor Vacancy/Maintenance/etc yet)

*Both tenants pay utilities currently but I still factored in water/sewer monthly @ $150 ( See Linked Report)

Realtor states current rents should be closer to $1,500 each side to match the market. 

Issues/Concerns/Random Facts

1)My First live-in House hack and have no idea about Section-8

2) May need to relocate for promotion could happen at ANY time in the next weeks/months, and if FHA allows, I would like to let the 6-month lease stay to term before moving in to that unit.

3) I did not factor in 10% property management but would like to entertain the idea of doing it myself.

4) Duplex is on a small street with many duplexes with exact same style/design cookie cut( at least 10 of them) but THIS duplex has the best curb appeal and landscaping out of all them and every duplex on the street appears to be fully-rented. 

Please let me know your thoughts & I will update info I may have forgot as-needed as it has been a long week!

Thank You for ANY guidance.