I LOVE the idea of househacking -- unfortunately I found BP & the househacking concept after I bought my own primary residence last year. I'm wondering if I can still take advantage of househacking benefits if I partner with a friend who would be living in the multi-unit. Would it still be considered a primary residence given that I won't live there, but he will? It would be titled under both our names.
Also, it's advised to shop for rates with different mortgage lenders. Does this basically mean that I get pre-approved by all the lenders I look into (Each one putting a hard inquiry on my credit)?
Thanks in advanced!
I just saw a post yesterday on this & the takeaway was it may not be possible if both people on loan are not residing in property or directly related, I believe.
The benefits of house-hacking are largely that you can take advantage of advantageous loan options while your tenants pay your living expenses. Anyone could, given the resources, get a conventional loan to purchase a property then rent it out on a per-room basis. House hacking allows people to start this journey in their own home and increase leverage through FHA and other low-down-payment loan options.
There is nothing stopping you from just buying a rental property. Without living in it it's not house hacking, just regular REI. Your friend would be a tenant that would pay you rent like any other tenant. Good luck.
I would also recommend you to steer clear of partnering on a deal where one person will be living in the property, especially if it is not you. There are so many ways that could go bad it's not even funny. Partner on investment deals, not on deals where it is also someone's home.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.