Questions from a first time home buyer looking to house hack and grow

[Lucas Dolislager]

Hey BP community!

Just getting started on the RE journey. Narrowed down to SFH or small MFH and house hack for my first property. Numbers don't make sense in my market to do anything but a house hack without putting down a large % down payment(open to suggestions if you think otherwise), but I want to build momentum, learn the ins and outs of investing/being a landlord and this seems like the most realistic and cost effective way. Seeking any and all advice on this topic!

I’m also wondering if any of the vets have had experience investing with friends/family members and what they would and would not recommend in regards to that. How have you navigated that without ruining or damaging the personal relationship?

Thank ya’ll in advance! 

[Julien Jeannot]

My advice is to not overthink it and jump into it. My market also required heavy downpayment to cash flow so I went down the road of a duplex house hack.

If I had listened to all the advice out there I would have never bought my first househack duplex. It was on the MLS, I "overpaid" for it, and it did not meet any of the %s rules, my lender and broker were not investor friendly and I did just about everything else "wrong."

Expensive market typically offer high appreciation over the years. Get the know the rule of 72.

Fast forward 5 years, I gained 50% in equity (forced equity & appreciation), 2x the cash flow.

Fast forward 7 years, 2x equity, cash flows $700/unit.

In my experience, fixed debt, rising rents and a long term strategy wins out every time.