Ok, new to BP and RE in general, so be gentle!
I currently have about 20k equity in my house and would like to get into rental properties. I generally like the idea of 4-plexes, but would have trouble in the near term getting to a 20% downpayment + closing (roughly $50k by my estimates).
I am wondering about the pros/cons of selling my home, using the equity+cash to buy a 4-plex, and rent another house as my own residence. Is this a crazy idea? Thinking out loud, I could rent a house in a better part of town than the 4-plex I can afford, but if I had any vacancy problems, I could always move in to the vacant unit. Is there a major downside/risk I'm missing? I'm assessing properties including the costs of a PM, especially as I start out.
A bit of background - I have a very stable job and debt free except for my house. Hopefully there's enough meat here to get some advice. Thanks in advance!
pm me, I have some information that can help you
If you buy something that's in a "safe" area then sure house hacking is a great strategy. If I were in your shoes (I'm assuming no wife and kids) I would sell the personal residence in a heartbeat and rent. One of the principal reasons for doing that, is now you don't have your personal home loan counting against your first four Fannie or Freddie loans. Your home mortgage counts in the number of mortgages you have / can have.
It's easy to get your first four loans for investments properties, but after that it's gets a little tougher. So make all four of them count toward investment properties.
Let me know if you are interested in a full service (acquisitions ,renovations, property management). One of the largest full service companies in the east. keyco.com
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