House Hack: Understanding Tenants

[Shiraj Haque]

Hi BP nation.

I’m relatively new the real estate game. I just finished Craig Curelop’s “House hacking strategy” book and it was definitely eye opening with a lot of great info.

One thing that has always concerned me however is the following:    

 1. Is there a way to tell if a prospective   property will receive interest from tenants? Ideally would like to avoid paying a whole mortgage myself.

2. I could probably afford the mortgage myself but it would take up roughly 60-65% of my income. Is this a sign I should not house hack?

Any advice would be greatly appreciated!

Thanks,

Shiraj



 

[Jimmy Lieu]

You have to stay under a 50% DTI but 40% if possible. For example, if you make $1,000 a month from your current job, that means you can only afford a property with a mortgage of $500/month at max.

I don't believe any lender will give you financing if the mortgage takes up 60-65% of your income, it just would be too risky from their side. However, I'm not an expert!