Newbie here, should I house hack while in grad school (FHA)?

Question

I live in a HCOL area, NYC metro area, currently in grad school paying $800/mo rent all included, $30/mo cellphone, $70/mo clunker car insurance. No credit card debt at all.

Student loans in deferment ($13k and going up), I can choose to pay student loans as I study, working UberEats making roughly $700-1000/week (just the weekends) but stacking cash in the meantime.

I have 800+ credit score and can gather $20-30k for a downpayment if necessary (not that I can afford much with that in my area) but I have been hesitant of even considering buying a home due to lack of steady income. I don't want to say UberEats is "steady" but it is really consistent, especially if pandemic worsens/more opportunity.

Should I actively seek to find a property I can "afford" now and house hack it considering I'm paying $800/mo in rent to someone else, or should I just be patient and finish my studies and then jump in with a steady income stream?

Zach Westerfield · Answer

You cant go wrong either way. Its personal preference. If you want to take the risk and jump start your real estate career by a few years, house hacking is one of the best ways to get started. Look for a good property in a good area. Make sure values in the area are increasing. If you do that, in a few years you will have equity that you can leverage to buy more properties, all while completing your education. Good luck!

I wish I would have been able to house hack in grad school, but i couldnt come close to affording a property in that area.

Eric James · Answer

Keep in mind there's currently a nation eviction moratorium on properties financed with federally backed mortgages (eg FHA). Politicians in both political parties are talking about extending this.

Christopher Lora · Answer

@Eric James great point! It ends today let's see what happens going forward.

Christopher Lora · Answer

@Zach Westerfield thanks for the insight! That's what I'm debating, the risk factor. I'm leaning towards taking the risk, keeping an eye out. Don't think I can afford anything over two units cause it'll be way out of reach, unless I move further away or into NJ.