Double Triplex House Hack?

Question

My wife and I want to buy our first property, ideally a small multifamily that we can house hack. I did some research on my area, sent 20 letters out to owners that fit my criteria, and got 2 responses so far. Now the 2nd response is interesting, the owner owns 2 triplexes that are attached together, and is interested in selling them as a bundle. This feels like a great opportunity, as we eventually want to retire off buy&hold RE investing, but idk if this is diving too far into the deep end, and taking too much risk.

I've been interested in real estate investing since I was in high school, watched thousands of videos, read multiple books on landlording, house hacking, RE tax strategies. I know we could manage it and put in the work. My question is what would be the ideal scenario in this case?

The owner owns the triplexes free & clear, so the only way I could make it work is with a seller financing structure, since I wouldn't have a 20-25% down payment to give the bank, since it's now a commercial property transaction with 6 units. What would you do, and any tips on how I should structure my offer? I have about $52k saved up for housing with a $20k emergency fund. I am currently communicating with the owner through text to find out current rents and what their desired purchase price starts at.

Thank You!

Benjamin Aaker · Answer

A big reason to house hack is getting an FHA loan. You won't be able to do that with this property. The deal with the seller is going to be very important. You shouldn't tap the emergency fund for this. It's not an emergency. You'll need to save back some funds for repairs and rehab. Sellers generally want to be out of the deal within a few years, so you need a plan for bank financing. This will get pretty complicated and might not be the best one to do for the first investment.

Mike Paolucci · Answer

I'd double check with the county to ensure they're actually considered separate properties vs a 6 unit residential commercial building. If they're in fact separate properties, see if he's open to letting you buy one per year. If he's good with it, I'd try buying them with a 5-10% conventional loan and live in one of the units for 1 year.

Great way to spread out your money and not get too in over your head right away.

Ashish Acharya · Answer

Hey Christopher! A little late to this, but this honestly sounds like a really exciting opportunity, especially with your long-term goal of building a buy & hold portfolio.

Personally, I wouldn’t feel like you have to jump straight into both triplexes right away. I’d at least see if the owner would be open to selling you one to start. That way, you can house hack, have the other units help cover your mortgage, and get some real experience under your belt without stretching yourself too thin. Then once you’re more comfortable (and have some reserves built up), you could always go back and try to pick up the second one.

On the financing side, I’d definitely reach out to a lender just to see what’s actually possible for you right now. Even if seller financing seems like the only option, there might be other routes you haven’t considered. It’s better to know your numbers before getting too deep into structuring something

I’d probably also get a real estate agent or an attorney involved, even though you found the deal yourself. Just having someone help you look things over and structure the contract can go a long way in making sure everything is actually what the owner says it is

From a tax perspective, there are some solid benefits once you get in. You’ll be able to write off things like interest, taxes, insurance, repairs, and depreciation. And as you start thinking about your next deals, it’s worth looking at how this fits into your overall tax strategy. A lot of people get into real estate for the passive income, but don’t realize that if you qualify for something like Real Estate Professional Status (REPS) or even go the short-term rental route and meet certain requirements, you may be able to use those losses to offset other income like W-2 or business income. That's how people can really grow and scale.

Overall, I’d just make sure you have a solid team around you, a lender, agent/attorney, and a CPA who understands real estate, so you can go into this feeling confident and not rushed.

You’re definitely thinking about this the right way, just don’t feel like you need to go all in on day one. Good luck and happy to connect!

Double Triplex House Hack?

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