I am about ready to buy a place to live and in my city that would cost ~$800k minimum for a 800 sq ft 2 bed in a decent neighborhood. Looking around though, I am seeing that i could get a 2-3 unit place (albeit not as nicely finished) in the ~$2/3m range. I am in a market that is on par with NYC for rent levels.
Anyone have any color on how making the move to buy a triplex/duplex has gone? I would plan to live in one of the units and rent out the others.
Rip it bro, what can possibly go wrong? NOTHING
I made this same move in my city around two years ago. I agree with the above on great financing for owner occupants. You can also leverage up to 96.5% as an owner occupant first time home buyer. You probably know this but its worth mentioning, the bank will count 75% of the rental income in their debt-to-income calculation for you which could help you get a higher priced property.
For my situation, I purchased a three family that was remodeled by a home flipper. I didn't want any value-add risk at the time and was more interested in the cash flow to offset living expenses. I toured the property with a general contractor who was able to point out the few areas where there was shoddy construction work. Whatever your miss during inspection generally becomes your responsibility after closing so definitely make sure you know what you're buying. I was probably overly diligent in my own process - asked my seller for permits and even asked them to make additional repairs to my liking prior to close. Depending on the lender, they will also require an inspection and that certain repairs be made prior to closing. Some sellers might tell you to fuck off if the property is being chased by multiple buyers and you're the only one asking the questions so there's a balance to strike here. End of the day you gotta do what's right for your situation.
My experience has been great so far. I purchased the property fully vacant and did the lease-up myself. I preferred this to an occupied property where your might now know who the tenants are - especially if you are living on the property with them. I borrowed a standard lease from my state and added and amendment page with some additional provisions to cover all of my legal bases. I also ran credit checks and background checks on all applicants. I continue to self-manage after moving out of the property which hasn't been too demanding, although can be a nuisance at times.
There are also plenty of great bigger pockets books out there as well that are great resources. Happy to give you some titles if you're interested. Best of luck with the purchase