Ashley Kehr:
You’ve got cash ready but can’t make the numbers work for a house Hack. High interest rates are shaking your bur plans and your tenant wants out of their lease early. What now?
Tony Robinson:
Today we’re unpacking three pressing questions that many Ricky are facing right now with real solutions that you can apply immediately.
Ashley Kehr:
This is the Real Estate Rookie podcast. I’m Ashley Care.
Tony Robinson:
And I’m Tony j Robinson. And with that, let’s get into our first question. So question number one today comes from Ben. Ben says, Hey everyone. I’m 26 years old, my wife is 29. We’ve been travel nursing for the last two years and have a pretty great cash pile to get started in real estate investing. We were planning on traveling longer, but just found out that we’re expecting. Odds are we will need to reel in our wonderlust and settle back down where all started, which is Akron, Ohio. The main goal for us is to find a two to four unit, preferably turnkey and at live in one side for a year or so before refinancing and scaling. An issue I’m running into in my market though, is high listing prices and lower rents not meeting the 1% rule. Those that do not meet the 1% rule are value adds that will need more work than I can put in right now. Looking for input though on a duplex I found in a great area, it’s listed at 285,001 side is already renting for $1,100. It’s newly renovated and turnkey. If we live on one side, we’ll still be paying $835 per month plus utilities. This seems like a lot for a house hack. Is the asking price outrageous? Is the rent too low or are these situations the new normal? Alright, so house hacking and what actually makes a house hack a good deal? So I guess what jumps out at you first, Ashley, as we hear that question?
Ashley Kehr:
Yeah, well, I think bringing up the 1% rule, I think for several years now, it’s been hard in a lot of markets to hit the 1% rule, but that shouldn’t be the only metric…