You should look into mid-term renting to traveling nurses or government contractors. You can often time sign a contract with the health care agency or government agency who pays you for however many months the client stays. The result is they pay you upfront and revenues are oftentimes higher than that of short term rentals. Great story!
Just so people watching this understand, you can build a duplex that's very small. For example, a small 600 sq ft per side shotgun-style duplex can be self-built for 1/10th the cost of the house in this video. The 600 sq ft is a common minimum square footage allowed in most areas of the US. My point is don't let the big numbers in this video scare you away from owning a duplex.
You are on your way to creating a property empire. Take your equity out of the first property and do it again. I did similar to what you did, and I was able to buy another property every second year until I had eleven units.
Both of you are very good investors..The duplex home looks so amazing. You guys did a phenomenal job. I love you, hold down the core every picture you put into that duplex ..I’m definitely going to reach out to you..when I’m ready to purchase me a home..!!
@ZavHustles I'm South of Nashville and will be starting my build soon. I'm thinking of getting my builders license like they did here so a contractor isn't fully in charge of my entire build
@ZavHustles well if you are your own contractor you'd save a ton of money by not paying one to custom build your property. You'd just be contracting out the labor yourself (plumber, electrician, roofer, etc)
Very smart to do this. The loan and duplex is considered owner-occupied. Even if you build it, you live in one side. You get better terms for the loan. Very motivated, young people doing the right thing.
It's great to see you guys accomplished one of your goals. I will be contacting your agency Ms. Nicole very soon concerning buying a home. I love your expertise.
GREAT VIDEO! Thank you for sharing. Can you do a video of a step by step outline of what is needed to get this done. Like credit scores, are there zoning restrictions, do you need to have a real estate license? Again thank you for sharing.
I love the idea and thank you guys you did a tremendous job. and give so many dreams the courage to do it. I will definitely try to do this in the future.
Great video! And I watched your breakdown of the estimated vs actual costs video, too! Just curious what the LTR (long term rental) income would be for one of your units? And it looks like you took out a $500K mortgage @ 25% down and 6% interest rate to payoff the construction loan and build a nice nest egg for yourselves and for rainy days! 😊
Wow I’m soo pissed and happy, jealous yet proud of yall. This definitely triggers buyers remorse for my situation 340k sfh in Dallas Texas. (I’m single BUT, I’m exempt from taxes so it’s manageable)
Thanks for sharing. I think I need to leave Texas. Homes that are 250k are around 500 a month for taxes alone. Might need to move back to Kentucky were taxes around 75 a month shoot.
Thank you! The easiest way to get into house hacking is to buy a multifamily property. You can buy a 2-4 unit property with an FHA loan (as little as 3.5% down) as long as you occupy one of the units! Buying is going to be more straight foward as building does come with additional hoops to jump through!
How do you choose finishes ? Are you buying at local home depot lowes or a local supplier or online ? I always think of how Im going to replace this item is it easily accessible.
We source materials from a variety of places but mostly local builder supply stores. Durability definetly stayed top of mind when we picked out the finishes and hopefully if we need to replace items in the future, we can find them or something similar!
Absolutely, the best way to go. One needs to however, move further away from the urban area to get a nice piece of property and a decent price. The urban areas now have overpriced old homes so it would not be cost feasible. One property at a time is the way to go for anyone to create their property empire. Just do initial savings so you can put as much money upfront, with the ridiculous interest rates that are presently available. Your duplex layout is clean, like in Germany. Hope you have great tenants renting.
Question, did you have to get a permit for the duplex build or was the lot already zoned for a duplex? Also how did you find a builder or GC to build the duplex?
We did need to obtain building permits! The lot we built on was already zoned properly for duplexes so there was no need to re-zone. Kachi is a licensed builder so he was the one who oversaw the build! Would it be helpful for us to make a video of how to find a good GC?
We did need to obtain building permits! The lot we built on was already zoned properly for duplexes so there was no need to re-zone. Kachi is a licensed builder so he was the one who oversaw the build! Would it be helpful for us to make a video of how to find a good GC?
I know you provided a high level account of the cost breakdown, but can you cover the costs associated with knocking down the existing home and carrying costs on the mortgage to do so? Or were those costs covered in that initial 28k plus 33k you already highlighted? I’m very curious to know what happens to the first mortgage payment when you buy a plot with an existing home on it.
We discuss the specific costs for knocking down the existing home in the full cost breakdown video! But to answer your question, the cost was part of the cash we invested in the project. We took the house down before taking out the construction loan to start the build.
Y’all so smart. It looks better than those tiny homes. Not really a fan of duplexes though. But I love how you two made this duplex a cool look with comfort.
If you build a 3rd property and rent your half of this duplex, you will have the new property mortgage paid for and have cash flow. What happened to the first property?
Do you mind if I ask about the appraisal value of the home after construction? I’ve seen duplexes in the Central AR area selling for about what you built yours for- $320K - $340k. Why put yourself through all that work to save a few thousand dollars?
@@KachiDubisi I think you misunderstood my intentions with my previous question. I’m not trying to criticize. Just trying to seek knowledge. Can you share the benefits of building vs buying? Really appreciate the awareness you’re creating in the real estate industry
I think it really just depends on your personal goals. The values in Central AR differ dramatically by neighborhood and even sometimes by street! For us, we had a very specific layout and location that we wanted. At the time, there were not any duplexes available that checked the boxes. In our case, our nuild costs came in well below what I believe the market value is if were were to sell it today! Hope that helps 😊
It still isnt cash flowing when you factor in the taxes you got to pay for the Airbnb. This is also factoring write offs. However it doesnt hurt and this really was smart
Taxes will follow the land value only until the property is complete and the end value has been assessed. For this reason, propety taxes will change between the first and second year you own a new construction home.
New subscriber here. If im understanding right the entire duplex’s mortgage is 2349 and renting 1 side of the duplex of using airbnb rental youre netting 2979 average a month before renting the other side or airbnb etc. Or am i understanding wrong.
Thanks for subscribing! Monthly gross income from renting out the one unit is averaging $2979. After paying the mortgage (for the entire building) of $2349 we net about $630/mo.
It would be dependent on any financing stipulations! For example, we don’t have a certain timeframe that we must occupy the home. However, if we were to purchase this duplex with something like an FHA loan for house hacking, we would be required to occupy it as our primary residence for one year. Hope that helps!
Thank you Nicole! My partner and I don’t have much for a down payment and would like to build with an fha loan or something similar as a hack to get into real estate investing and would like to sell soon after building. Thanks again for your input!
This is in Arkansas. Keep in mind that the loan amount is less than 300k. Market value of the duplex is closer to 600k which is why the taxes will be much higher when assessed.
Great question! We have experience with long term rentals already and honestly just wanted to try something new. I wasn’t sure if airbnb would work in our area since it isn’t touristy. Up until this point, we have only had long term rentals where we didn’t need to coordinate with guests, cleaners, etc. We ran the numbers and felt confident that we could rent out one side long term if needed, but living just next door gave us the courage to pursue a new short term strategy!
@@TSBye-qo1vc But they would have loads of time to do something else, rather that always come and clean when a new short term rental is done, and replace different stuff all the time. Short term takes a bigger toll on the rental than long term, usually :P
@dennisoestermann1880 Not true. I have an Airbnb property that I manage remotely. I never clean or replace anything I have a maid that refreshes thd property after every guest and I have a handyman incase anything needs to be fixed.
@@Flush0000 You just confirmed what i wrote. If you have a succesfull short term rental and gets new guests every week, your maid comes in 52 times a year. So lets just say 50 times. And the average pay in the US is $18.11 for a maid. And it takes 2 hours every time. And lets say your handyman needs to come in half as much to do repairs and gardening. But it takes 3 hours every time, cause some repairs is large. A handymans average pay is $25.49. So lets do the math. Maid: $18.11x2= $36.22x50= $1811 Handymand: $25.49x3=$76.47x25= $1911.75 And that adds up to $3722.75 in wages. And add that to all the materials you need to buy ect. Depending on where your short term rental is in the US, it can be 2 months mortage just in wages or more. And lots of short term renters dont have the same respect for your property as long term renters. But its your choice :P
Our construction loan converted into permanent financing after completion of the build. Now instead of just paying interest (as we did throughout the build process), we make principal and interest payments. There is only one loan. Hope that helps!
Only way they get stuff for free is to extract it by default from someone else. My "renters" will not pay full housing prices because they are making me rich by renting from me!!!! But some people......
i have around 100k cash, i’m 20 with no job and 0 work history, only credit i have is from being added as an authorized user on siblings account. Do you think it would be possible for me to do exactly what you guys did if i worked on my credit? I can get my credit to 700-800 in a year. Also assuming i got my work history put together.
If you can establish a good credit and work history, I don't see why not! Lenders are going to want to see that you are financially stable and can make your loan payments!
We took out a construction loan for the duplex that we will be refinancing, most likely into a conventional loan. Although we could have pulled the equity out with a cash out refi, we decided against it and opted for a lower mortgage payment for now!
@@NicoleNark Good strategy! Thanks for being honest. Me and wife just bought our first home and are looking to buy another. Always good to hear others testimony
