Combining House-Hacking and BRRRR?

2 Replies

What would it look like to combine house-hacking and BRRRR on your first ever investment property?

Side question: How likely is it that a hard-money lender will lend to a recent college grad for their first residence/investment property?

Thank you to whoever is willing to help me!

Originally posted by @Marcus Graves :

What would it look like to combine house-hacking and BRRRR on your first ever investment property?

Side question: How likely is it that a hard-money lender will lend to a recent college grad for their first residence/investment property?

Thank you to whoever is willing to help me!

Hello Marcus,

To use the house-hack and BRRRR strategy, you can:

1. use an FHA loan to purchase a multi-family property.

2. Renovate the entire property, or at least the apartment(s) that you will rent out to tenants

3. Occupy one unit.

4. Refinance the property once you've accumulated some equity.

5. Get out of the FHA loan - assuming there is enough equity when you refinance.

6. Repeat the process by purchasing another multi-family property and renting out the unit you just vacated from the first investment.

Regarding getting a HML out of college, I am not a lender but I have worked with people who have used Hard money in the past. From what I gather, the less experience and collateral you have, the less favorable the terms of the loan - i.e. higher interest rate, shorter loan term, etc.

Best of luck to you moving forward!

Abel

Thank you for the reply, Abel!

That is very helpful. My only thought with an FHA or conventional mortgage is that they may not lend on a property that needs a lot of work? (Not too sure as I have no experience).


Really appreciate your help.