Starting out by House Hacking

14 Replies

So I'm starting out by looking for a MF property in Jefferson Parish. Of course I will be living in one unit and renting the others (hopefully find a good enough deal to actually get paid to live in there for awhile). I will be utilizing a 203k loan and am open to any and all advice from anyone wanting to help their fellow man! 

Welcome!

A lot of people on here got started by house hacking. We house hacked our first rental and used that money to fund our renovation on our VA loan. So we didn't do a 203b.

Well actually our income self funded our renovation and that "downpayment" ended up buying our first two pure rentals. So there are TONS of ways to get started. 

Make sure you post your numbers to the the buy and selling board because there are lots of people here who are more than happy to go over the numbers. 

That being said, take everything for a grain of salt. Everyone operates in different areas. While we do very well, within our "business plan" many people don't think our houses work. They do for us, but we have a very "different" plan. 

Look forward to seeing you around!

@Elizabeth Colegrove

Thanks for the support. Glad your "different" plan has been working for you. Thanks for the tip on posting the numbers on the buy and sell board. Any input is greatly appreciated. 

Catch you later on the BP forums!

Ah yeah, house hacking is great! In my opinion, it's a secure and reliable way to get started in the real estate field while starting to build some nice equity. Actually, it's the method I'm going to use to get started too when I move into OKC with my best friend.

Definitely best way to get your feet wet.. That's how I started with a SFR. Good luck!

@Joshua Chen

My thoughts exactly on it. Good luck on your move to OKC.

@Chris Harkins

How did you house hack a sfr? Did you live in it and convert it into a duplex, or move out then rented it? Sorry if the question is too intrusive, I was just curious. 

@Miguel Rodriguez

Thanks! I'll be sure to keep BP posted on the plan.

@Miguel Rodriguez

 I am also going to be house hacking my first deal, it makes the most sense for me when starting out. 

Have you thought about your target rental audience? I am trying to purchase near a university or hospital because most students around me have housing paid for by parents, and nurses would be reliable enough (I hope). 

I am currently house hacking in a SFR. I pretty much have 4 bedrooms in my house, and initially it was just me. I moved my room to the basement and my two tenants have upstairs. I get to have passive income, they get a reasonable place to live. There will be kinks, there will be some disagreements, but I feel like even if I stop I've made 2 lifelong friends.

@Carson Sweezy

I'm looking into the New Orleans suburbs. Real estate is going crazy over here.

Devin Morgan

House hacking and making friends, you did good in that one. Just be careful as I hear it can go either way with that. The BP podcast makes reference to this. Good luck with your REI!

My wife and I borrowed money from our folks for the down payment and bought a 4 bedroom fixer when we were in College.  We rented three rooms and lived for free, and kept the garage for ourselves (we had a lot of hobbies so having this storage space was a big deal back then).  We had room mates and lived rent free for several years until we sold the home and moved.  It ended up being a really good deal for us.  I actually learned a ton about being a landlord and working with tenants during that time.  Like all choices in life, there is compromise.  It was not always great times having roommates but it was a great option for us at the time.

Thanks @Miguel Rodriguez I completely understand where you're coming from. One friend is a previous tenant, the other one is a current tenant. It wasn't the intention, but naturally living under the same room sometimes it happens. We've have one disagreement, worked it out, and he just renewed his 6 month lease. My other tenant is over 20 years older than me and she pretty much is always in her room. I understand the risk associated with it, and I prefer it this way. 

Funny the main reason I did it this way is because a sibling asked to move with me with her 2 children because she knew I had the space. I knew her moving with me would be a disaster for multiple reasons so I told her no and got roommates to fill the rooms so I wouldn't have to have uncomfortable conversations with family. Initially I had an issue telling family no whether its for a place to stay, money, etc. Now for the most part if it's something I don't want to do I have no issue saying nope, sorry. So initially I did it to help protect me, after that I just stuck with it.

can you please post your process like J Scott does, I'm actually going that exact route house hacking using the 203 k loan. 

Devin Morgan

I'll try and keep you posted on it. I'll also have to check out J Scott's posts on his different processes.

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