Updated over 5 years ago on . Most recent reply
Preparation for my first house Hack.
I’m preparing to purchase my first home hopefully this year. I plan to purchase a single family home in Raleigh, NC, with renting out the other rooms to long time friends. I just want to know what to prepare for upfront financially outside the scope of a deposit and closing cost. And if it’s a good idea to have a already renovated property or buy a house I can build sweat equity with.
Most Popular Reply
Hi @Richard Sessoms congrats on getting the ball rolling on your investing career! As far as preparing financially, you will want to have cash reserves set aside in the amount of 3-6 months worth of mortgage payments. This will help you have any unexpected expenses WHEN they happen. Also, a lender may require you to have this as well. To find out what a lender will require you will need to speak with one. They're not scary... they want to give you money... that's how they get paid!
If you’d like a recommendation for a lender DM me. I have one that I have closed many house hacking sales with (my own house hack included), and checks off all of the boxes above as well. Not to mention she’s licensed in all 50 states.
And if you're looking for a property to build sweat equity, that still costs money... so that is additional money you will want to have set aside.
Get a good first property and then move on. Don't try to hit a home run with a rundown pile of junk that might make you some money or might sink you. Most of my clients have base hits properties. Base hits add up in the long run to an amazing portfolio.
For your first house hack, start simple and go from there. Find a nice, pretty property that is in great shape and make sure the numbers work. There are plenty of houses out there right now that can potentially work for you.