House Hacking as a Recent College Graduate

[Rory Rodriguez]

Hey BP Community,

 I graduated college this past spring and began working full time shortly after. I'm looking to buy my first real estate property as a 2-4 unit house hack later this year. This seems like the best way to start investing and a great learning experience by self managing tenants. Specifically, I plan to put 5-10% down with conventional financing. I'm targeting B class properties in Columbus that can appreciate as I hold over time, all while lowering my housing expenses in the short term.

Another thing I'm considering is using value add to gain additional equity and higher rents. However, I'm definitely not the most handy. One idea I had is similar to the "slow BRRRR" where I inherit tenants on a property that could use some cosmetic renovations. Since I'll be house hacking I can learn some of the basic skills and rehab my unit. As previous tenants move out, I can do the same to those units and raise rents. I understand I could hire a contractor to do this, but I'm hoping to cut costs and learn.

I’d love to hear any thoughts on this strategy and any advice for new/younger real estate investors. I’m also excited to connect with other investors in the Columbus area. Seems like there’s a lot of Buckeyes here on BP!

[Remington Lyman]

Quote from @Rory Rodriguez:

Hey BP Community,

 I graduated college this past spring and began working full time shortly after. I'm looking to buy my first real estate property as a 2-4 unit house hack later this year. This seems like the best way to start investing and a great learning experience by self managing tenants. Specifically, I plan to put 5-10% down with conventional financing. I'm targeting B class properties in Columbus that can appreciate as I hold over time, all while lowering my housing expenses in the short term.

Another thing I'm considering is using value add to gain additional equity and higher rents. However, I'm definitely not the most handy. One idea I had is similar to the "slow BRRRR" where I inherit tenants on a property that could use some cosmetic renovations. Since I'll be house hacking I can learn some of the basic skills and rehab my unit. As previous tenants move out, I can do the same to those units and raise rents. I understand I could hire a contractor to do this, but I'm hoping to cut costs and learn.

I’d love to hear any thoughts on this strategy and any advice for new/younger real estate investors. I’m also excited to connect with other investors in the Columbus area. Seems like there’s a lot of Buckeyes here on BP!

I started doing this in 2017. I started with a duplex and now I have 100+ units and a handful of commercial deals. That’s a solid way to start and house hacking is one of the best learning experiences you can get early on. A slow value add approach works well if you’re patient and realistic about timelines and costs, especially while you’re living in the property. Just be conservative with your numbers, keep reserves, and don’t underestimate how long small projects take when you’re learning. If the deal works even without perfect execution, you’re setting yourself up well.