How to Buy First Multi-Unit to House Hack

2 Replies

Hello everyone! I've only discovered this community fairly recently, but I am so impressed. I love the wealth of information and the collaborative vibe.

I'm a real estate agent in Pittsburgh, PA who wants to, with my partner and our baby girl, move into a multi-unit building within the next year or two as our first foray into RE investing. Our first problem, though, is that we don't know how we'll buy it. The income from his job is pretty variable (he's a server working on getting his RE license) and so is mine. I've also not been working as much lately because I'm our baby's primary care provider.

We are accumulating cash all the time as we're both excellent savers of the money we do bring in. We both have very good to excellent credit scores. But, from the few talks I've had with lender friends, income is the biggest determinant regarding getting a loan, and neither of ours is great, and as I said, it's variable.

So, decent savings + great credit + low and variable income. After searching the forums and reading some similar threads, we're vaguely familiar with hard money loans and some other creative finance techniques. But I wanted to get some more personal feedback. What are our options?

Thank you all!

@Jade Pickenheim being that you say your not looking to purchase a place for about a year or two, is it possible for one of you guys to get a more "reliable" source of income?  

Another thing to note, I believe many lenders allow for you to count 75% of market rents towards your mortgage which probably would help you guys out.

Unfortunately, I'm not an expert or all too familiar with the creative financing techniques out there but I'm sure someone might be able to chime in with those.

@Jade Pickenheim I would get in touch with multiple lenders to see if you can find one that would lend to you. If you have a good deal they'll take the rents from the other units into account to a degree. You may be best served to get in touch with a local bank or "portfolio lender" because they have more variability in their underwriting terms since they keep their loans in house and don't sell them to the secondary market. You could also pursue deals where you might get a seller that would seller finance the place for you until you are able to get a long term mortgage. OR find someone that would sponsor your loan and put their name on it that has a steady income, if that's possible for you. 

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