Hey everyone. I have a quick question. In November I plan on house hacking my first property, which will be a duplex. I'm currently living with mom and I plan on hacking it with her. I'll live in one unit and she'll stay in the other (because I desperately need my own space) We'll both go half on the mortgage. I'll save up another downpayment for my 2nd property, which will be another 2-4 unit, and when I buy that 2nd property, I plan on renting out the one I was living and moving into the new one. What are your guy's thoughts on this? Any tips would be appreciated.
be very very very careful mixing family with rentals! While there has been some great outcomes you find horror stories too!
You should also double check that you will be able to qualify for the next houses! If the place isn't at far market value and/or your moms paying half it could make thing more complicated!
We went from 0 to 7 houses in 4 years and we started with a personal house! So definitely a great idea. If you do involve family have a clear expectation and it in writing!
I agree, be very careful with family. Keep in mind what might happen if mom stops paying for what ever reason. And in fairness, let her know what will happen if you stop paying for what ever reason. Its hard to predict but you should be cautious.
Personally, I would figure a way to be one the mortgage without mom simply because the family situation may cause problems down the road if things don't work out. Keep in mind I'm conservative with that type of situation.
It gets harder to buy multi unit properties after your first. You can use an owner-occupant mortgage such as FHA, but after the first the banks start asking a lot more questions and you may be required to put down as much as 25%. You can probably get away with it twice but after that say bye bye to low money down financing.
@Elizabeth Colegrove so how would I check to see if I'll qualify for the next houses now?
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