How many times can you house hack

4 Replies

@A.P. King I have had multiple clients here in the Chicago area who are able to do three properties as house hacks. After that point, it starts to get very, very challenging to pull off and in most cases people start to move on to a phase of life where it no longer makes sense. If your first move is an FHA loan, then you need to think through how to regain that loan so you can use it again in a year. Probably the best way is to refinance after you have created some equity in the deal. That is easier said then done though! You have to be very intentional about the whole process for sure and you need to have a great team guiding you.

@A.P. King You definitely need to plan head and talk with your loan officer so they understand your plan and can think 2-3 steps ahead with you. My wife and I just closed on our 2nd house hack in Chicago and have it setup where we each can do 2 more comfortably. We bought our current house hack in 2016 with an FHA mortgage and got lucky that the market appreciated enough to allow us to refinance. Upon refinancing, we put the mortgage only in my name to remove the debt from my wife to allow her purchasing power for the 2nd house hack that is solely in her name. She was able to use home possible 5% down to purchase. We now each have an opportunity to use an FHA in the future for 4 properties.

It's easier to do that obviously if you have a partner/spouse who has the same goals as you and you can spread properties out like that.  Like John mentioned above, as you get older your lifestyle is more likely to change and thus moves you out of house hacking.  Try to get as many as you can as soon as possible!

@A.P. King - Short answer as @John Warren and @Ryan Canfield stated above is yes.  

But you have to be working with the right team who understands the financing systems. FHA financing is not specifically intended for investors to use as a jump start for their real estate investor careers, HOWEVER, it works out that the FHA product provides just that, an amazing springboard to get started.

@Ryan Canfield - Congrats on closing your 2nd house hack.  Where neighborhood are you in?