Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago on . Most recent reply

User Stats

9
Posts
2
Votes
Eric Charles
  • Portland, MI
2
Votes |
9
Posts

House hacking with FHA question

Eric Charles
  • Portland, MI
Posted

Looking to get started in real estate investing with house hacking within the next year. I've been reading everything I can find and listening to the podcast, but I still have a question.

If I go FHA at 3.5% down to minimize out of pocket cost up front, how do I have the equity to refinance into a conventional in only a year or two? If I buy a distressed property and rehab it, then that defeats the purpose of going FHA to minimize up front cost? Am I missing something here?

Most Popular Reply

User Stats

218
Posts
134
Votes
Joshua Hively
  • Columbus, OH
134
Votes |
218
Posts
Joshua Hively
  • Columbus, OH
Replied

I am in the process of house hacking a small multi as well. Refinancing does not have to be part of the plan. My plan is to buy a good enough deal that, hopefully I can add a bit of value and wait for the tenants to pay the principal down past 20% equity (5-10 years ish). At that point I can refi and get out of the PMI. During that time I will recycle the cash flow into the next property.

Loading replies...