Thoughts on house hacking !!

15 Replies

I’m  fairly new to real estate investing.I am a plumber.  And I’ve been reading and researching about house hacking. Seems very do able and also profitable. Do you guys think that would make a great first rental property.? Cons and pros?

Thanks in advance guys!

Do it.
Pros:
Tenant pays your mortgage
You live for free or at least very cheap
Helps you build a relationship with a bank for future deals if you do financing
Gets the first deal out of the way so you're not scared to keep going.

Cons:
Have to live next to a tenant
Will be hard to separate yourself as the landlord (only matters if you want to be seen as the "manager)

I'm sure others will have things to add too.

@Jerry Cinor

House hacking is great if you don't mind living in the same vicinity as your tenants. 

You can apply for an FHA loan, and if you are approved you put next to nothing down (3-4% on average). You would also only have to live there for a year after the loan closes.

The only trouble is finding a multifamily property at the right price in todays market. Depending on your area, it may be hard to find, as many are getting into multifamily for the reasons you've stated.

All in all I think that it would make for a great first investment experience for you.

Best of luck! 

Yes I’m trying to get my first deal and keep going up from there. Since I don’t have any major responsibilities. And a decent paying job. I feel like now is the time. I’m pretty handy as well. I live in Florida and see some decent deals.”at least to me”.  3/3 for as low as 160k. Decent neighborhood.


thanks Brother!
Originally posted by @Aaron Van Curen :

Do it.
Pros:
Tenant pays your mortgage
You live for free or at least very cheap
Helps you build a relationship with a bank for future deals if you do financing
Gets the first deal out of the way so you're not scared to keep going.

Cons:
Have to live next to a tenant
Will be hard to separate yourself as the landlord (only matters if you want to be seen as the "manager)

I'm sure others will have things to add too.

I don’t mind at all living in same place as the tenants.  I think it’s to my advantage at some point because, I get to see what’s going on in the units and behavior of the tenants. 
I live in Florida and I see couple decent deal “at least to me” 3/3 going for 155-160k in decent neighborhood.
Thanks for the awesome feedback brother.

Originally posted by @Christopher Finn :

@Jerry Cinor

House hacking is great if you don't mind living in the same vicinity as your tenants. 

You can apply for an FHA loan, and if you are approved you put next to nothing down (3-4% on average). You would also only have to live there for a year after the loan closes.

The only trouble is finding a multifamily property at the right price in todays market. Depending on your area, it may be hard to find, as many are getting into multifamily for the reasons you've stated.

All in all I think that it would make for a great first investment experience for you.

Best of luck! 

@Jerry Cinor Depends if you want to live close to your tenants. You'll also need to find a property in a neighborhood you feel comfortable living in. People who have done it eventually move out and rent the unit they once lived in out. Seems to be a temporary situation. Will depend on each individual's comfort level. 

Very well said Rachel!

finding the right property for me to live in will be ideal. Living with tenant not much of a problem.

Thanks Sister!

Originally posted by @Rachel H.:

@Jerry Cinor Depends if you want to live close to your tenants. You'll also need to find a property in a neighborhood you feel comfortable living in. People who have done it eventually move out and rent the unit they once lived in out. Seems to be a temporary situation. Will depend on each individual's comfort level. 

In my opinion house hacking is one of the best and safest way to get into real estate investing. 

Buy a 2-4 unit 

Owner Occupied mortgage (one that you could afford even at 0-50% occupancy)

Try to make it so you live for free by renting the other units. 

Save the $ you would spend on housing for future down payment.

Rinse and repeat until you have as many units as you want and you can buy a SFH for yourself.

@Jerry Cinor

I currently am house hacking, it is a great way to get started if you are able to- 

If you can find a property in your area that works, go for it! 

Awesome man. Nice to hear from someone who is currently doing it. Can I message you for more info?

Originally posted by @Steve Bracero :

@Jerry Cinor

I currently am house hacking, it is a great way to get started if you are able to- 

If you can find a property in your area that works, go for it! 

Can be great for single people. Those with families often don't want to use this strategy.

Yeah that’s what I’m thinking as well. Good thing I don’t have a family yet.  

Thanks brother! Originally posted by @Eric James :

Can be great for single people. Those with families often don't want to use this strategy.

Great response man. nice to hear. I think that will be my approach. Out of all other strategies house hacking seems best fit for me.

thanks brother!

Originally posted by @Kirill Chervets :

In my opinion house hacking is one of the best and safest way to get into real estate investing. 

Buy a 2-4 unit 

Owner Occupied mortgage (one that you could afford even at 0-50% occupancy)

Try to make it so you live for free by renting the other units. 

Save the $ you would spend on housing for future down payment.

Rinse and repeat until you have as many units as you want and you can buy a SFH for yourself.

It'd be ideal to find a great 2, 3, or 4 unit property in your area to house-hack, and is also at a price-point where the rental market makes the numbers really work.

But, if it's really tough to find a multi-unit, you could find a single-family home and rent out an extra room or 2. That obviously puts you in a closer situation since you're actually sharing living space with roommates, but it is still an option depending on what you're willing to do. I'd suggest renting out the basement, but seeing that you're likely in Florida, basements aren't typically available.

I used to rent out rooms in my house, and it worked out fine and decreased my PITI mortgage by half. It was great! Some roommates were better than others, but they were all good people. We had written leases, and towards the end of my stint renting rooms, I only offered month-to-month leases. This way, if the roommate wasn't really meshing well in the house--but didn't do anything that you could legally evict for--I could simply give a 30-day notice to vacate. If there's a part of the house you don't want to give them access, spell it out in the lease. For example, our lease stated that they had street parking. So they had no access to long-term parking in the driveway nor our garage (just our preference). This also didn't mean that we didn't let them park temporarily in the driveway from time to time to load/unload things.

sound like a great idea. my dad is currently renting out one of his SFH by rooms and he pay little to no PITI.

Thanks sister! 

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