What’s the next move?

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Hi BiggerPockets I just purchased a SFH in Zephyrhills Florida to house hack my plan is to stay there for a year and rent it out next year and buy another property hopefully a multi family property. My question I’m looking for any ideas of being able to purchase a another property sooner than later while I have a new mortgage. Thanks for any help

Luke Trovinger · Answer

Congrats on the house hack @Marvin Scott Butler! If your DTI supports it and you have the capital, the easiest way will likely be to go the traditional investment route by putting 20-25% down on an investment property. You could also get more creative by partnering with someone in your network if your lender isn't able to qualify you. Best of luck!

Heath Thomas Jr · Answer

Marvin, if you refi your FHA loan into a conventional, you can use FHA again on a 1-4 unit as long as you live in it again.

Shawn S. · Answer

Hi @Marvin Scott Butler! Good for you on your Z-Hills house hack!

There are a couple of different ways to either speed up your savings rate or make it easier to go into the next house hack purchase, but one way is to utilize low money down loans like FHA, which allows you to get into a MFH (up to 4 units, I believe) with just a 3.5% down payment. The more units, the more rental income to offset your mortgage which leads to more money back in your pocket!

Another potential way to increase savings while house hacking is to rent out your extra room(s) to short-term tenants through services like AirBnB and Vrbo. Depending on the amenities you offer, the location, and occupancy rate (among other things), you could really bring in a decent amount of money each month. Maybe even live for free! Something to note, though, is that some municipalities have restrictions on short-term rentals. So I would look into that before doing it.

Hope this was helpful!

Good luck!

Marvin Scott Butler · Answer

@Heath Thomas Jr Okay Thomas thank you for the information

Marvin Scott Butler · Answer

@Jaquetta T Ragland Yes thank you that’s one option I did not think about

Jaquetta T Ragland · Answer

@Marvin Scott Butler owner financing could be an option.

Marvin Scott Butler · Answer

@Shawn S. Thanks Shawn I actually use a fha loan to purchase the property. I wanted to refi After a year into a conventional loan and used it for to help to purchase  a multi family property but I don’t if I can used fha again after the Rifi thanks again for your help

Marvin Scott Butler · Answer

@Luke Trovinger Thank you for your advice

What’s the next move?

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