Quote from @Ryan Irwin:
Quote from @Mohammed Abdullah:
Hi everyone, New to the multi family investing, me and my wife are purchasing our first property it's a duplex in a very good location. ( in Johnston Iowa ) everything a tenant would ever need is only 10-20 minutes away. we are house hacking living in one side of the duplex. My plan is to live in it for a few years. One unit is remodeled and I want to do the same to the other unit Once the tenants move out. Increase in appreciation and equity and the tax benefits. We are using a VA loan it's the 80/20 2 loans.( no money down) no cash flow now but I believe it will cash flow once we update the unit, increase rent and refinance. It's 1025$ right now with a long term tenant of 14 years. Once I refinance in 4/5 years im hoping I have enough equity to use on another property( 4 plex or another duplex or maybe team up for something bigger) Does anyone see any flaws with my plan or adjusting needed ? Any tips? Any Feed back? Or has anyone house hacked in Des Moines? Any advice would be greatly appreciated
Thank You,
This is great, congrats on taking a smart and solid approach to your REI portfolio! Sounds good to me. One thing you could look at is value-add with the existing tenant. Are their amenities you could add to help boost their rent? Regardless, continue to adjust rate as market dictates (especially in Johnston in what sounds like a great location). To add on what @Kristine Hodges said, there is also a meet up the 2nd Tue of the month at 5:30 PM (if evenings work better for you). Keep up the journey and keep connecting!!
thank you so much for the input, I believe right now both units are under market rents the average rent in the area is 1100$.
beside location, the duplex itself comes with extras many don’t have a deck, walk out basement, extra bathroom and a garage. The plan would be to remodel one of the units, and finish the basement to make that walk out into a full living space area/ room/ something useful. I was thinking sense I’m going to live in one unit. I can include internet and cable to stand out sense I’ll be using those anyways and split the bill with the tenant and write half of it off for taxes.
