Multi family house hacking in the Bay area
Member since 2021 · 4 posts · 1 vote
Hello All ,
My husband & I recently moved from the midwest to Bay Area California. Currently we are renting a place but would like to get a house once our lease is up . We cannot afford getting a single family home as of yet so have been considering getting a multifamily (Duplex) and do a house hack.
Looking for some advice ,on the following :
- Is it a good idea to house hack in the bay area
- Locations with possibilities of getting good rental income
Appreciate your help!!
TIA
In the bay area in general but not always the duplexes tend to not be in the most desirable parts of the towns but not always. At a Real Estate Conference right before the pandemic started I heard Ben Leybovich discuss luxury house hacking. See the link below for more details. I've sort of done this with my personal residence. The in-law unit I built offsets more than half my mortgage. When construction costs go down and interest rates go down I will probably build another one in my backyard.
Read up on SB9. If you find a large enough lot you can potentially build 4 units on it. Once you have a property in mind and need an architect let me know.
https://www.biggerpockets.com/...
San Francisco and the Bay Area are being pushed by the state to build more housing. SF has just committed to building 82,000 units over the next 10 years but no one knows how they will spur developers to actually build these. That could help lower prices but doesn't help you in the short term.
We lived in Los Gatos for 30 years we retired and moved to western Wa about 7 years ago. We had rental property in Ca and have more where we live now. The Bay Area seems to be transitioning to be much more affordable than it used to be. The city of San Francisco especially. I would not be in too much of a hurry, it will probably get even better. PM me if you are looking for realtor etc. All the best!
In the bay area in general but not always the duplexes tend to not be in the most desirable parts of the towns but not always. At a Real Estate Conference right before the pandemic started I heard Ben Leybovich discuss luxury house hacking. See the link below for more details. I've sort of done this with my personal residence. The in-law unit I built offsets more than half my mortgage. When construction costs go down and interest rates go down I will probably build another one in my backyard.
Read up on SB9. If you find a large enough lot you can potentially build 4 units on it. Once you have a property in mind and need an architect let me know.
https://www.biggerpockets.com/...
San Francisco and the Bay Area are being pushed by the state to build more housing. SF has just committed to building 82,000 units over the next 10 years but no one knows how they will spur developers to actually build these. That could help lower prices but doesn't help you in the short term.
Might not be reading your post right , but you mentioned since you cannot afford a SFH, you are instead going to buy a duplex ? Multi-family homes are usually more expensive than SFH, unless you are saying you are willing to buy a duplex in a less desirable area than live in a SFH in a desirable area.
Hi Kanti,
Hope you have been enjoying the weather here in the Bay Area thus far compared to the midwest.
Just to make sure I understand, your husband and yourself can't afford the monthly payment of a SFR but you would be able to afford a duplex due to renting out the 2nd unit? From what I read it as, it says you can't afford a SFR but can afford a Duplex. Which technically doesn't add up.
It is a great idea to house hack anywhere. It is a great initial stone into home ownership. For areas with good rental income equals higher cost for property acquisition. You can't go wrong with the majority of cities within San Mateo County & Santa Clara County.
Specially in San Jose, areas to avoid would be East Side San Jose. Anything along Monterey HWY. Subdivisions such as "Cadillac East" / "Eden" which is along Hamilton Ave/Winchester Blvd/San Tomas EXPY. Many pockets of Downtown you want to avoid.
Other than that, majority of the South Bay is great. But again, great areas means higher purchase prices.
The first step for you and any buyer, would be to speak with multiple lenders and get pre-approved. From there, you'll have your max budget set and you'll know exactly what to look for in terms of pricing. A question I would have you is where do you and your husband work? Because if you have to commute everyday, most would imagine you want to be as close as possible to work.
There is a lot of details, information, etc, behind this entire subject.
Hi Kanti,
Hope you have been enjoying the weather here in the Bay Area thus far compared to the midwest.
Just to make sure I understand, your husband and yourself can't afford the monthly payment of a SFR but you would be able to afford a duplex due to renting out the 2nd unit? From what I read it as, it says you can't afford a SFR but can afford a Duplex. Which technically doesn't add up.
It is a great idea to house hack anywhere. It is a great initial stone into home ownership. For areas with good rental income equals higher cost for property acquisition. You can't go wrong with the majority of cities within San Mateo County & Santa Clara County.
Specially in San Jose, areas to avoid would be East Side San Jose. Anything along Monterey HWY. Subdivisions such as "Cadillac East" / "Eden" which is along Hamilton Ave/Winchester Blvd/San Tomas EXPY. Many pockets of Downtown you want to avoid.
Other than that, majority of the South Bay is great. But again, great areas means higher purchase prices.
The first step for you and any buyer, would be to speak with multiple lenders and get pre-approved. From there, you'll have your max budget set and you'll know exactly what to look for in terms of pricing. A question I would have you is where do you and your husband work? Because if you have to commute everyday, most would imagine you want to be as close as possible to work.
There is a lot of details, information, etc, behind this entire subject.
If you buy a duplex (typically less expensive thank a SFH) you can get the rent to count as income for the loan.