NEW BOOK—House Hack Your Way to Financial Freedom!

85 Replies

Would my buddy and I be able to house hack a house together? What are the rules of the percentage that you have to put down? Our intent is to buy a 5 bedroom house, we each get our own room, and then rent out the other 3 rooms individually. 

@Craig Curelop hi Craig, i have a question. I want to house-hack a 4 bedroom house , so my idea is to live in the basement while renting the upstairs which is the bigger space that should be able to cover the most of the mortgage. My question is, if this house is above the price that im pre-approved for by the lender, the house is 800k and im pre-approved for 450k, is there anyway to get a higher pre-approval if i say ill be renting upstairs? I live in Vancouver Canada and prices here are usually above 500k everything basicly. Wanted to know of any tips to go in such an expensive city

@Angel Carrasco Majority of the lenders in Canada will allow you to use rental income for either upstairs or downstairs/ legal basement suite to qualify for a mortgage. 

Have you ever wondered how an individual (or a couple) who earns less than $100,000 a year can afford to buy multiple rental properties?

The key is how the mortgage lenders calculate the rental property income. Some lenders will take 50% of the rental income and add it to your annual income and then include the full carrying costs of the new mortgage into your debt.

Other lenders will use what is called an 80% rental offset. Using this method, the carrying costs are reduced by 80% of the rental income. The way the rental income is treated is what will make a huge difference when trying to obtain multiple mortgages.

I got the book! I cannot wait to read it :)

I live in expensive market in California. I think house hacking is great way to minimize high housing cost here. However, I need to find a house in safe area with good school district for my kids. A duplex costs over a million in those areas so It's not realistic for me. Also my husband doesn't like the idea of sharing a living space with strangers. I would love to get any advice for this situation.  

Huh, so buying a multi-unit and living in one while renting out the others is now "House Hacking"?  I talked about this on here years ago for free.  I guess I should have sold it as a course.  It's stupid easy to do.  It just sucks as a lifestyle in most markets.  You'll get tired of your tenants living "with" you very fast.  As an aside, the sweetest way to do this is to find something zoned C-5 (multi-use).  You can then lease out units to residents or limited white collar businesses.  Gives you a little more flexibility and you won't have neighbors up your arse about your tenants because they have the expectation that your property is a multiunit.  


Tim the OG House Hacker

@Craig Curelop

I'm nearly finished with the book, and haven't come across an answer to a question.

I understand the need of living in the property for a year to fulfill the primary residence portion of the loan and avoid mortgage fraud, but I've had two lenders recently tell me that even after a year, I need to have a reason to move if it is in the local area, or if I'm downsizing. I'm currently in a 3/2 Pool home and the multifamilies I'm looking at are mostly 2/2s, and the 3/2s are sans a pool and smaller. My two brokers have said it's frowned on for a young, growing family to downscale and the underwriters may have a concern.

Have you or anyone else run across this? Is this the brokers being conservative, or is there a legal concern anyone knows about?

Cheers!

ASV

Super excited about house hacking, originally thought we were going to purchase a duplex and go that route but ended up with a single family home and wasn't sure until this podcast that it was still a good option. With a converted garage, full bath and is bigger than my first studio apartment we in less than three weeks realized that we can definitely still house hack! We plan to have it listed and ready for a renter by the end of this week without jeopardizing too much comfort for us and a 6yr old! We are already scouting out our next purchase in early 2020 with the savings we hope to have from this and keep learning the business!

Hi Mindy,

I'm looking for my 1st property to house hack.  After you screen and approve a tenant to rent a room in your home, what rules govern every day behavior. What are some recommendations for governing the shared spaces like kitchen, bathrooms, living room, and yard? Do you have rules for using and cleaning up these areas?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here