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All Forum Posts by: Sung Yu

Sung Yu has started 10 posts and replied 21 times.

Post: 1031 fourplex into a single family

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12

Does anyone have experience exchanging their small multi family property into a single family home, use it as an investment property then move into it as a primary residence after meeting the requirements? I'm looking at rolling over ~350k into the replacement property. 


Projected sale: 950-990k 

Replacement property budget: 990k - 1.1M 

Plan: rent out the replacement home until meeting the requirements, then move into it while renting out a portion of the home via short-term rental 

Post: considering all options for my next househack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12
Quote from @Josh Bowser:

Hey Sung!

I would imagine going the section 8 route would be a huge headache for a house hack. There are certain liberties you can take when you are an owner occupant - such as setting 'house rules' ect. Not sure if you will get those same liberties while house hacking. I'd reach out to a PM that specializes in vouchers - they should be able to help you out. 

You can get a lot more than you think for a single bedroom in the Atlanta area by advertising on FB marketplace and housing groups. There are a ton of young people moving to ATL like yourself that would be happy to pay $1000 / month and make some friends along the way.

 @Josh Bowser good point. Atlanta housing fb pages have been really helpful in figuring out rents and for my own living situation too

Post: considering all options for my next househack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12
Quote from @Ryan Thomson:

@Sung Yu are you going to buy a multifamily? If not, I'm curious how section 8 would work with renting out the bedrooms. I've only investigated renting the whole home as a section 8 property. 

I know in Colorado Springs, some of the zip codes can generate way above market rent. Especially when the homes are 4 or 5+ bedrooms. If renting the whole house as section 8 is your exit plan that could make a lot of sense depending on the bedroom count and the zipcode. Those numbers should be on the section 8 website for your area. 

 Hey @Ryan Thomson, section 8 would only work for properties that i can section off and convert it into a separate unit. but the area that allows for high rent is quite limited so it makes my search area incredibly small. leaning towards a traditional house hack at the moment 

Post: considering all options for my next househack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12
Quote from @Ben Firstenberg:

Hey @Sung Yu, if you're going to go the section 8 route AND you're going to self manage (which I assume you are) I'd do my best to maintain a professional relationship with the tenant. Maybe don't even advertise that you're the owner of the property. I heard someone suggest once that you tell the tenant you're not the owner but the "on site manager". 

A lot of my recent house hacking clients have had success with buying a home with an in law suite. It's a little bit like having a duplex where one unit is a 3/2 and the other is a 1/1. That way, you can rent out a larger portion of the house. 

If you're interested, check out this post I made about looking for house hacks in Atlanta. I hope it helps! https://www.biggerpockets.com/forums/921/topics/1126350-wher...
 

 @Ben Firstenberg Thanks for sharing. Stuff you mentioned here and in your blog matches my approach. Still trying to find areas where I can close the gap between rental demand and mortgage payment. Minimal cashflow is okay with me. Just needs to be in an area it can cover my expenses and that's worth it for me to make updates to while I'm living in it.

Main challenge with the nonconforming duplex approach has been finding a house with a separate entrance. Do you have househacking clients who bought in Norcross/Duluth area? Would love to hear more about how they were able to make it work. Seems like a tough area with a 5% down option. Thanks! 

Post: considering all options for my next househack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12
Quote from @Gregory Schwartz:

Find a house with a garage apartment or ADU. Live in the ADU and rent out the main house. If you're new to managing properties keep it simple and avoid Section 8. A house with an ADU will appreciate faster than a multifamily in most markets.

Thats what I would do.

 @Gregory Schwartz

Greg, I've been following you for a while now. Loved your BP episode and seeing your activities on SM. Just got out of the service this year myself and opportunities in RE have been a big reason. Congrats on quitting your W2 and going full-time!   

Post: Where you can still find deals -- House Hacks

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12

Thanks for sharing. I'm currently looking for my house hack. Both on/off market. Waiting for the right one...

1. split level/basement/in-law suite style around Decatur and Gwinnett county. likely an older home, rent out rooms, expect to pay $500-1000 while living in it. I prefer to do LTR so finding an area with a strong rental demand is key...trying to close the gap between market rent and mortgage payment. Researching section 8, but it only makes sense in very small limited areas that have higher rent (mainly looking in gwinnett) 

2. new construction 4/3 near commercial development under 400k. Mostly south atlanta. A lot of them have rental restrictions so LTR is the only option. Hard to find something that will cash flow even after moving out, but with these I'm mainly targeting market appreciationg over 5-10yr hold period.

Post: considering all options for my next househack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12

Hi everyone,

I recently moved to Atlanta and am actively searching for my next house hack. It'll most likely be from the MLS, so I'm trying to be creative and still make the numbers still work. I prefer not to go the STR/padsplit route. A strong alternative for my area seems to be the housing voucher route (section rate) and buying in an area that allows for a high payment. Other than due diligence in the tenant selection process, any other unique stuff that I should be thinking ahead as it pertains to investing in section 8? Thank you all in advance!

Post: First investment property

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $685,000

This was my first deal (4-unit) that got me started in REI. This property has taught me numerous invaluable lessons, and I plan on holding it until I can find an opportunity in which I can re-invest the proceeds into more cashflow friendly market!

What made you interested in investing in this type of deal?

It was an appropriate time personally to leverage more debt rather than finding a duplex or a SFH.

How did you find this deal and how did you negotiate it?

Through a investor friendly agent!

How did you finance this deal?

VA

How did you add value to the deal?

Cosmetic updates and rehabbing during the turn-over periods

Post: Looking for my next house hack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12

Hello BP family, I'm looking for an investor-friendly agent in Atlanta to help me find my next house hack. My situation is that I'm separating from the military and moving to ATL (currently 2hrs away).

Timeline: Get plugged into auto MLS searches now. Ideal purchase is September-October 2023. Open to buying earlier depending on the scale of renovation (comfortable with a small to medium rehab but I'd like to avoid a complete gut). Off market deals are welcome.

Lending options: FHA / FHA 203K / conventional low money down. I already maxed out my VA entitlements. 800+ credit with 100k+ W2 income...No concerns with getting bank approval. Happy to compensate agents who understand creative financing and can help me find seller finance or subto deals!

Property type: traditional small multi family but assuming they're hard to find, most likely a SFH with ADU/DADU opportunity. Interested to hear how easy/hard it is to obtain zoning permits in Georgia.

Deal criteria: I'd like my total housing expenses to be <$500 while owner occupying. Planning to self manage for 1yr to help with the numbers. After moving out, targeting long term rental and net $250/unit in cash flow. Open to MTR/STR depending on the location.

Location: Heavily relying on the agent's knowledge...I'm looking at Gwinett, North Fulton,Cobb, Dekalb but I'll be moving out after 1yr so I'm flexible with the location.

Look forward to connecting and learning so I can better manage my expectations. Please feel free to share if you know of any upcoming RE meet ups!

Post: Looking for my next house hack

Sung YuPosted
  • Rental Property Investor
  • Atlanta, GA
  • Posts 22
  • Votes 12

Hello BP family, I'm looking for an investor-friendly agent in Atlanta to help me find my next house hack. My situation is that I'm separating from the military and moving to ATL (currently 2hrs away). 

Timeline: Get plugged into auto MLS searches now. Ideal purchase is September-October 2023. Open to buying earlier depending on the scale of renovation (comfortable with a small to medium rehab but I'd like to avoid a complete gut). Off market deals are welcome.

Lending options: FHA / FHA 203K / conventional low money down. I already maxed out my VA entitlements. 800+ credit with 100k+ W2 income...No concerns with getting bank approval. Happy to compensate agents who understand creative financing and can help me find seller finance or subto deals!

Property type: traditional small multi family but assuming they're hard to find, most likely a SFH with ADU/DADU opportunity. Interested to hear how easy/hard it is to obtain zoning permits in Georgia.

Deal criteria: I'd like my total housing expenses to be <$500 while owner occupying. Planning to self manage for 1yr to help with the numbers. After moving out, targeting long term rental and net $250/unit in cash flow. Open to MTR/STR depending on the location.

Location: Heavily relying on the agent's knowledge...I'm looking at Gwinett, North Fulton,Cobb, Dekalb but I'll be moving out after 1yr so I'm flexible with the location. 

Look forward to connecting and learning so I can better manage my expectations. Please feel free to share if you know of any upcoming RE meet ups!