House Hacking For Beginners

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House Hacking For Beginners

Noah Brown
Member since 2026 · 11 posts · 17 votes

If you could start all over what would be the first step you would take into mastering house hacking ? 

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4mo
Quote from @Noah Brown:

If you could start all over what would be the first step you would take into mastering house hacking ? 


If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.

I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.

I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.

I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.

While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.

Good luck with whatever you decide to do!

[email protected]248-209-6824
Logical Property Management4.9460 Reviews
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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4mo

    @Noah Brown

    Were I doing it again, I would spend less time looking for the absolute best deal and concentrate more on rent analysis, cost analysis, and managing people. The true meaning of house hacking is the ability to make great purchases and also manage people well; get that done, and you will have everything else sorted out.

    Good luck!

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    4mo

    I would focus on a 2-4 unit place. Hard to beat the perks and long term benefits it has

    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    4mo
    Quote from @Noah Brown:

    If you could start all over what would be the first step you would take into mastering house hacking ? 

    Hi Noah! If I could start all over, the first thing I would do is spend a lot of time learning how to analyze deals and estimate the true cost of ownership before ever making an offer. A lot of people focus on finding tenants or maximizing rent, but the real game is buying the right property in the first place. I'd want to understand financing, maintenance costs, reserves, insurance, vacancies, and what the property would realistically cash flow after all expenses. After that, I'd look for a property where I could significantly reduce or eliminate my own housing expense while keeping the management side relatively simple. House hacking is one of the best ways to get started because you learn landlording, financing, tenant screening, and property management on a smaller scale while building equity. The biggest mistake I see beginners make is waiting for the perfect deal instead of buying a solid deal that helps them gain experience. Your first house hack probably won't be your last property, but it can teach you lessons that pay off for the rest of your investing career.
    [email protected]614-300-7535
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  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    4mo

    Hey Noah,

    If I were starting over and already had a solid understanding of the basics, my first practical step would be talking to an investor-friendly lender.

    A lot of people spend months analyzing deals without actually knowing what they can qualify for, what loan programs are available, or how much cash they'll need to bring to closing. Getting those answers early makes the entire search process much more focused.

    From there, I'd start identifying a few target neighborhoods and looking at actual listings every day. You learn a lot when you start comparing rents, purchase prices, taxes, and financing costs in real time.

    Good luck, and feel free to reach out with any more questions. My DMs are always open!

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4mo
    Quote from @Noah Brown:

    If you could start all over what would be the first step you would take into mastering house hacking ? 


    If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.

    I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

    To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

    Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.

    I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.

    I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

    After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.

    While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.

    Good luck with whatever you decide to do!

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    2Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    4mo

    I'd look into building my network more so that when issues arise, you have people you can contact so you can actually achieve the returns you have on your spreadsheet!

    [email protected]
    Brick House CPAs53 Reviews
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  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 573 posts · 379 votes
    4mo
    Quote from @Noah Brown:

    If you could start all over what would be the first step you would take into mastering house hacking ? 


    Noah,

    To start over and master house hacking I would find the best property in the best location that would allow me to acquire it with an FHA loan and 3.5% down. I would underwrite this so that the property would cash flow or break even after all expenses after I move out and do it again. Next I would rinse and repeat this process with a conventional 5% down loan. I would be building my skills in my day job so I can increase my income and do my best not to allow lifestyle creek to take place. I would likely rent the other room/rooms in the unit I occupied. I would be sure to be well capitalized for WHEN things break and vacancy takes place. If I were able to acquire say 5 properties in 10 years and then move into a small house, my later years would be much much easier!

    Best of luck what ever you decide to do! If you have any specific questions or I can be a resource in any way reach out.

    [email protected]208-600-2814
    1Reply
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