Intro
Good Morning, This is Everything House Hacking. We cover everything and anything that involves House Hacking, so you can get out there and build wealth by minimizing your biggest expense.
Here’s what we have for you today:
🙄 Acronyms outside of the workplace
☀️ Risky sunshine state deal
🍿 Premiere of the Mailbag Section
Let’s dive in.
Lesson
ADU’s?
Acronyms are awesome… said no one ever.
We aren’t fans of them either but unfortunately, they even live in the world of House Hacking. The only difference is that this acronym can save your hard earned cash by decreasing your housing expenses.
That’s right, an Additional Dwelling Unit is the key to most House Hacker’s success. An ADU can come in many forms such as:
A separate unit in a multifamily
A converted basement
A converted garage
A converted attic
A closet (JK, unless you’re the type to illegally sublease your NYC apartment)
The point is that there is no one-size-fits-all for ADU’s, but they all have potential to save or even make money from your property. Though the perks of an ADU are high, it’s important to do your own due-diligence when it comes to evaluating whether or not your property is eligible for an ADU. Some towns and districts have ordinances that make it illegal in areas zoned for single families to have an ADU. Make sure if you’re adding an ADU that you obtain the right permits, and you’re buying a property with an ADU that it is legal.
Big Picture: ADU’s can allow those who are hunting for house hacks to expand their criteria beyond traditional multifamilies. Those who are interested in house-hacking but aren’t in a position to buy another property may also look into what they can do to make their current home House Hackable by adding an ADU.
Deal Analysis
Want a deal you’re looking at to be analyzed, or want feedback on your analysis? Send it to support@everythinghousehacking.com
Remember a few newsletters ago when we mentioned metrics to evaluate a city to invest in (sorry new subscribers)?
It’s no secret that Florida is one of the pandemic winners when it comes to welcoming in those who wanted a change of scenery from major cities. With an expected population growth of 25% over the next 20 years, Tampa is expected to get 🔥.
This 2 family unit appears to be in good shape with a moderately updated unit. With market rents going for $1700-$2200 in this area for similar rentals, this unit should be able to rent for about $1895, leaving us with a total living expense of $762, which is far below market rent.
Our Final Thoughts: If you were feeling extra studious and found this listing prior to reading you would notice that this house is going up for auction and one unit is still occupied. There aren’t pictures of the other unit and we don’t know what kind of shape it’s in, which indicates the tenants in place could be “difficult”. An eviction process may be needed (~$5000 minimum + no rent).
With the unknowns we will sit this one out. That’s not to say that a little due-diligence couldn’t change our thoughts.
Mailbag Feature
I spend too much time on social media, particularly looking at cat’s personal instagram accounts and cooks on tiktok. What should I be following to mix in some education? - Denise from Michigan
Well Denise… We prefer dog videos… but here are a few accounts we suggest:
Bigger Pockets - The folks at bigger pockets are the OG’s when it comes to content on real estate investing. Their co-founder Brandon turner actually coined the term “House Hacking” back in like… ‘09.
Tony J Robinson - Tony puts out some solid information about airbnb investing (a great way to house hack). He’s not afraid to share his failures so you don’t have to make the same mistakes
Female in Finance - Leandra is a savvy investor that talks about investing strategies and finance that will help put you in a position to acquire more assets like real estate
David Goggins - A post from David in your feed will be plenty to get you to stop doom scrolling. His no BS attitude can be applied to all areas of life and will make you want to get after it.
Robert Leonard - Shameless Plug
Interesting Stuff
Book: The Book on Rental Property Investing
Timeless guide by Bigger Pocket’s founder Brandon Turner
Quote: “Buy land, they’re not making it anymore.” - Mark Twain
Video: Converting your garage into a beautiful ADU
Closing Time…
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