Buying a first home and living in it

2 Replies

As someone that's been recently interested into real estate. I've seen this " house hack " where you'll get a FHA loan , buy a duplex then rent it out and live rent free with the tenants you rent out to.

Now everything sounds easy and great ! But I know there’s a lot more than just doing that. I was wondering if it’s really that too good to be true. What complications do you have to deal with doing this “ house hack “

Hey Victor,

It is kind of that easy and kind of not. 

I say its easy because:
* You can find a multifamily or even a single family on the MLS that would allow for a house hack
* Once you find a property you like, its pretty straight forward to make the purchase. There are many steps, but nothing challenging
* Its relatively easy to figure out the numbers on potential properties to see if you will live for free or not

I say its not that easy because:
* Depending on your area properties may be priced very high not allowing you to live for free
* House hacking also requires you to become a landlord and property manager. Some may be fine with this but many do not handle it well
* Buying a duplex right off the MLS may not result in you living for free unless its a really good deal. You may either need to buy a larger multifamily (ex. 3-4 units) or purchase a value add duplex. You could also purchase a single family and rent by the room.

Hope that helps and I would definitely recommend house hacking. Its such an easy and smart way to enter real estate investing.

Good luck and let me know if you have any questions.

When its labeled as "easier" its b/c relative to other ways of obtaining real estate investments, its much easier with financing and you can manage it your self. Landlording on training wheels. 

Some things to consider, buying a home that has existing tenants in one side of the duplex(not usually ideal), how much do you have for a DP and any rehab costs, living in close proximity to your tenants(how comfortable are you with that?) and after you move out how will this property perform(will it be cashflowing or cashflow negative?). These are things I would think about... Long term and short term.