How to househack in Roseville

Question

Hey Everyone!

Just moved to Roseville, CA and am looking to househack to save on expenses and get started on real estate investing.

My original idea was to buy a halfplex, triplex, or quaxplex and live in one unit and rent the other(s) out. Upon crunching the numbers, it appears this will not cover the entire mortgage

My next idea was do get a place with a mother-in-law suite and walkout basement and rent those units as an STR to increase revenue. No dice here though because Roseville does not allow accessory dwelling units (mother-in-law suites count for this as well as walkout basements) to be rented for anything less than 30 days.

My last idea here is to use the mother-in-law suite and walkout basement as a MTR to traveling nurses. Do you know if this is done in the area and if there are any laws/regulations that inhibit this? Are there any strategies that you have used that work well to househack in the Roseville area?

Thanks in advance!

Bonnie Low · Answer

You don't necessarily have to get your entire mortgage covered with a househack. Some people do, some people just experience a healthy offset to their mortgage expenses. So that's just something to think about. Check with the regulatory body in Roseville to find out what the minimum rental term is. It's probably 30 days or thereabouts and set your midterm rental to comply with that length of stay if you decide to go that route. Most jurisdictions will allow rentals around the 30-day mark because month-to-month rental contracts are still very common. But it's very location specific, so just double check before you go that route.

Joey Banasihan · Answer

Hey @Lance Metsger, I think @Scott Scoville laid it out nicely and I use the same marketing/processes here in Boise, ID. And @Bonnie Low is also spot on. I believe that it is more important to take the first step, get into that first property, and go through the process of learning, rather than hitting a home run via cash flow/complete mortgage coverage (and this is going to be market specific, especially in Roseville CA - my in-laws live there). Consider doing Room by Room LTR or MTR for the house hack, which will require some uncomfortability and comprimises but you totatally got this! Totally down to chat more via DM if you'd like but taking the first step in asking for advice/help is awesome, keep it up!

Scott Scoville · Answer

Hey Lance,

House hacking a duplex is a great idea, even if doesn't eliminate your payment, it's a great way to get started in real estate. I currently have a mid term rental that I rent out to traveling nurses, and I use Furnished Finders for lead gen, and rent redi to manage the property. You don't need a permit like you do for STR's and it's pretty easy to use. I have a very few vacancies and rents are high. Location is key though. Let me know if you'd like to chat more about this. Best of luck.

Jake Andronico · Answer

@Lance Metsger

I house hacked two properties in Reno NV and was able to barely break even in 2019 and 2020 with record low interest rates.

Unless you have a large downpayment, things are not going to look phenomenal.

But, as @Bonnie Low and @Scott Scoville said, you do not need to break even to get started and still have it be profitable/solid long term.

I'm assuming you're renting right now - so my suggestion would be comparing those costs to see if it makes sense.

Good luck!! You're in the right spot :)

Amanda Lawson · Answer

What is the actual location? I've lived in Roseville and CA  help guide you in this area.

Jamil Katzenbarger · Answer

You can give me a ring anytime

Noah Laker · Answer

Hey Lance, I'm a real estate broker and investor here in Sacramento. I manage over 100 STR properties, and I have to tell you that Roseville is the least friendly place for STR in this metro. I would highly recommend looking elsewhere. (Reason being, when you eventually want to move out and rinse and repeat, you will no longer be able to do STR... it's primary residence only!)

Also, Roseville is a suburban market, meaning it's more about appreciation than cashflow. There are many neighborhoods in Sacramento where you can get a healthy mix of both, and also do STR without such govt interference.

I applaud you for going on this journey! Househacking is a perfect strategy for getting started. I'm personally living in a multifamily househack right now, which I purchased just over a year ago, and in escrow for the next one.

Lance Metsger · Answer

@Scott Scoville Thanks for the reply and info. Would love to chat more about this. I do have an opportunity to purchase a duplex in the area but am not sure if it is the right location and if the numbers would work. Is there a time for you that works for a phone call?

Jamil Katzenbarger · Answer

Hi @Lance Metsger. Short term rentals are indeed allowed in Roseville as long as the rental is located at your primary residence. This is what I do personally and would love to chat more. Also another great advantage that is relatively easy is to accomplish saving on your monthly expense is to assume FHA or VA loans with a lower interest rate. Of course there is more to it.

Lance Metsger · Answer

The duplex is in South Cirby

How to househack in Roseville

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