Hi everyone! I'm looking to buy my first property in Philadelphia this spring and I need some assistance analyzing deals. I'm interested in purchasing a multi-family unit and house hacking. I plan on using a 3.5% down FHA and I'm torn between two deals. My ultimate goal was to reduce what I pay currently for my rent, and both properties would achieve this.
Deal A: Triplex, ( 4bd, 4 ba - 1,700 sqft total) newly renovated, in a developing area (Brewerytown- a lot of investment in this area, steady appreciation and slightly further in terms of proximity to bars and entertainment) . Two of the units are already rented, and I would live in one unit with my partner and we would split that rent. The projected rents for this deal are in line with the market rents.
Deal B: Duplex ( 5bd, 5bd - 2,400 sqft total), new construction, Also in a developing area BUT this neighborhood (Kensington) is in close proximity to a very trendy part of town (Fishtown). This duplex is vacant and the projected rents would require me to pay a little bit more than market value for the unit i'd be living in. Upside is the area and potential for appreciation.
I'm trying to understand which deal is a better investment or does it come down to preference? How much value should i be putting on potential appreciation? I think both areas are promising, but perhaps deal B has a better location. Deal B is larger. Deal A numbers already work. Deal B would require me to pay more (few hundred bucks), until the rents in the area are up to market level, but the trade off would be potentially having a more valuable investment.
What are some key things to think about when buying a househack? Thanks in advance!
