I'm looking to get into the real estate investing world soon. As a young man I think house hacking a duplex or triplex would fit me perfect and my plans going forward. I will be investing in Philadelphia and the surrounding areas. What is some advice you guys have about House hacking. I'd love feedback from anyone, but especially from someone who has done it before. Thanks everyone!
@Cameron Jordan - I think house hacking is a great way to get started with rental properties. I'm definitely glad that I went that route. I have been house hacking a duplex in Roxborough for about a year now. Here's some advice as you work towards finding that first property.
1) Keep educating yourself on rental properties. Listen to podcasts, read books, keep talking to people who have rental properties. The more well-versed you are, the easier things will be and the more comfortable you will be talking to professionals throughout the process.
2) Find a good real estate agent that you can trust. There's a lot of real estate professionals that you are going to need to work with (lenders, contractors, accountants, lawyers, etc.) in the course of buying, renovating, and renting your house, and you definitely want to network and build your team with all these professionals. But it's not real until your agent is taking you around to look at properties. It's also probable that your agent will connect you with your lender, the other professional that you will not be able to get your property without. So get a good agent.
Good luck with the process. If you have any questions at any point along the way, feel free to reach out.
Excelente Richard, I will follow your suggestions as well. Thanks for posting them.
@Zachary Paul great advice! If I have any investors looking in Philly, I will send them your way!
Hey @Cameron Jordan , it's a great strategy to get started. Some benefits I have noticed while househacking in my triplex:
- I am at the property daily and can stay up on any maintenance and issues without having to remember to drive by or check in with a property manager
- Rent collection is as simple as a door knock.
- Tenants generally will be less inclined to try any funny business because they know you are right next door (or above/below them)
- It's more conducive for learning as you go.
- More favorable loan and insurance terms for an owner occupied property.
There are also downsides such as:
- Less privacy
- Blurring of the landlord vs neighbor relationship
- Can be harder to be the "bad guy" on things because you see your tenants often.
Advice: Treat it like a business as much as you can, even though house-hacking can feel like a hobby, stay organized, and take care of your property and your tenants (pride of ownership, people notice this), for all properties but especially for househacks.
I definitely think the pros outweigh the cons, especially folks with flexibility of time and lifestyle. If you decide you don't like it (after you get that first rent check, you'll probably realize you like it), it is easy enough to move to a new place or sell.
@John Knisely I would like to connect with you and learn more about your experience.
@Fred Williams sounds good. Feel free to shoot me a message.