Hello, how is everyone doing? I wanted to know if anyone knew of any good books that have great information on house hacking. My friend and I are planning on house hacking our first property God Willing by mid year 2017. Can anyone help? We want to make sure we learn very well before taking necessary action.
We are in New Jersey looking to invest in a multifamily in Union City, West New York, North Bergen, Guttenburg, or Fairview areas. The plan is to get an FHA loan at hopefully 3.5% DP.
If any also knows of any REIA meets in the area that would be awesome because we are looking to attend one.
Hey Will! You're on the right path. There isn't too much to learn on house hacking. Just study tenant management.
Check out the BP books!
BP's The Book on Managing Rental Properties and Landlording on Autopilot are two great books to check out!
Yeah I'm house hacking a 4 unit right now!
@Rosston Smith oh nice man. How did that happen for you?
Originally posted by @Will Flores :
Rosston Smith oh nice man. How did that happen for you?
Studied, Saved, Took action!
This post has been removed.
@Rosston Smith any tips you can share. I am in the studying and saving process right now.
Originally posted by @Will Flores :
Rosston Smith any tips you can share. I am in the studying and saving process right now.
Once you get enough money to cover a downpayment, go ahead and start making offers on properties. Even if they are lowball. Start negotiating. Also, get approved with a lender first.
@Will Flores , there are two ways to house hack. Buy a property with more bedrooms than you need, and rent out the extras, or buy a property with more units than you need and rent out the extras.
Which are you planning on doing?
You can purchase up to 4 units with a residential loan. 5 or more units bumps you up to a commercial loan. I have no experience with commercial so I'm going to confine my advice to the residential loans.
Call a lender and ask them how much of a loan you could qualify for. Know your credit score, total debts and total income when you call.
Contact an agent and ask them to put you on their mailing list with the city(ies) you want to look in, and the total listing price the amount your lender told you. Are there any other must-haves on your list? (After living in a house with 4 adults and two children with one bathroom, 2 bathrooms is tops on my list.)
Ask the agent to start sending you listings once a day, and look through them, drive past them if you have time, etc. You can start to get a feel for what properties are selling for - or at least what they are being listed at.
@Mindy Jensen thank you so much for taking the time to respond. My friend and I are looking to house hack in the form of us occupying one unit and renting out the other. We actually found a property this morning which we will go look at tomorrow but we are not 100% sure that we are running the numbers correctly when it comes to the expenses. It's 2/1 per unit with 2 units and a basement. It looks like it needs some rehab so we know we will be doing an FHA with a 203K. So we also need to find out how much we will need to rehab which I'm guessing we will need to get a contractor to look at the property for us to get an estimate on how much we will need.
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