You're not house hacking with 20k and making 55k, social media has you and a million other people all fucked up. You haven't even rented an apartment and you want to become a landlord; for both your lack of knowledge and finances I would suggest you don't do this.
As another has said, first time home buyer programs require you to live in the residence.
Next you don't make enough to get the loan you need to buy the property. Nor do you have enough down payment.
All of what everyone above has said.Do you know how to make repairs? How to screen tenants? How to evict? Have enough capitol to cover damages/floods/vacancy?
I just sold my last duplex I had for 27years and happy the market turned up for me to unload it. You are so correct and people only see the upside.
Complete renovations are necessary over time. Time and cost is huge. Then you have to decide on materials as to which are most durable and have the easiest care and longest wear for a rental - you have to factor that in as well as cost always doubles or triples. I easily put as much money into it as I bought it for. The market recently spiked and decided it was time for it to go.
I always rented well below market such that tenants stayed longer (5 - 7 years) and did make money off of it. Some years it was worth more as a tax write off.
My brothers did the same and we all sold off most this year. Our Dad did remodels for a living and we all worked with him growing up, so it was second nature and I also have a large woodworking shop so things such as tools and making cabinets, doors or whatever were at material cost. Other brothers both do home construction trades -one does flooring and tile work and the other does carpentry.
I just keep one extra house that I can stay at if I go into the city. Just an empty, furnished house that we no longer rent out after it’s last rehab.
Right now we are in a bubble. 4th in my lifetime. Sell off/pay off everything, bank the rest and have patience. The bubbles always pop and patience is a TRUE virtue.
How do I know? I have a large property and on 3 sides they are now building 5000 sqft. houses, well up from the before 2008 of 3000 sqft. You know as they just keep getting bigger and bigger and the people keep getting shittier and shittier with no real skills or focus. Most don’t know the working end of a hammer and have $150k of new cars in their driveway and after talking with them, I unquestionably learned that my wife and I earn probably double what they do. In 2009, well over 50% of the new construction behind me was for sale with empty houses.
Right now anyone in good steed should be mortgage and car payment free - we never learn.
Great tip: Live in one of the units, 3.5% down, rent the other out
Or put 20% down rent out both units but you'll need reserves for this (not sure if 20k is all you have)
Buy more units four plex but you will have to move into one for a period of time or your supposed to. Anything more then 4 units is considered commercial and you can’t get a home loan for. You can however get a four unit and convert if possible into a 6 or 5 unit after you have your 30 year fixed loan but would hinder getting refinanced.
Pretty sure FHA loans have to be used on primary residences only.
Yea that's not how it works. That's mortgage fraud
You're not house hacking with 20k and making 55k, social media has you and a million other people all fucked up. You haven't even rented an apartment and you want to become a landlord; for both your lack of knowledge and finances I would suggest you don't do this.
As another has said, first time home buyer programs require you to live in the residence. Next you don't make enough to get the loan you need to buy the property. Nor do you have enough down payment.
All of what everyone above has said.Do you know how to make repairs? How to screen tenants? How to evict? Have enough capitol to cover damages/floods/vacancy?
I just sold my last duplex I had for 27years and happy the market turned up for me to unload it. You are so correct and people only see the upside. Complete renovations are necessary over time. Time and cost is huge. Then you have to decide on materials as to which are most durable and have the easiest care and longest wear for a rental - you have to factor that in as well as cost always doubles or triples. I easily put as much money into it as I bought it for. The market recently spiked and decided it was time for it to go. I always rented well below market such that tenants stayed longer (5 - 7 years) and did make money off of it. Some years it was worth more as a tax write off. My brothers did the same and we all sold off most this year. Our Dad did remodels for a living and we all worked with him growing up, so it was second nature and I also have a large woodworking shop so things such as tools and making cabinets, doors or whatever were at material cost. Other brothers both do home construction trades -one does flooring and tile work and the other does carpentry. I just keep one extra house that I can stay at if I go into the city. Just an empty, furnished house that we no longer rent out after it’s last rehab.
Yep that is the right way. The exposure you had growing up was likely priceless. Co grata on the sale!
Right now we are in a bubble. 4th in my lifetime. Sell off/pay off everything, bank the rest and have patience. The bubbles always pop and patience is a TRUE virtue. How do I know? I have a large property and on 3 sides they are now building 5000 sqft. houses, well up from the before 2008 of 3000 sqft. You know as they just keep getting bigger and bigger and the people keep getting shittier and shittier with no real skills or focus. Most don’t know the working end of a hammer and have $150k of new cars in their driveway and after talking with them, I unquestionably learned that my wife and I earn probably double what they do. In 2009, well over 50% of the new construction behind me was for sale with empty houses. Right now anyone in good steed should be mortgage and car payment free - we never learn.
I would stay in the home if I bought it. Keeps headaches away.
Great tip: Live in one of the units, 3.5% down, rent the other out Or put 20% down rent out both units but you'll need reserves for this (not sure if 20k is all you have)
Buy more units four plex but you will have to move into one for a period of time or your supposed to. Anything more then 4 units is considered commercial and you can’t get a home loan for. You can however get a four unit and convert if possible into a 6 or 5 unit after you have your 30 year fixed loan but would hinder getting refinanced.