Best Financing options for SECOND House Hacking Property

5 Replies

Hi Everyone,

I purchased a Single Family home (4 bedrooms 2 bath) in 2017 which since then I have housed hacked by renting out two of the rooms. I am now considering leasing the entire home to one of my tenants and move on to repeat the process: Purchase  a 3 or 4 bedroom home and rent out the rooms again.

My question is the following: What options do I have as far as financing the second purchase? It's my understanding that a second FHA is difficult to get especially if the properties are in close proximity to each other. Is hardmoney lending a viable option for a house hacking plan?

Should I look into possibly finding someone that would be willing to fund the purchase with their own capital? 

Or is there another option out there that I should consider?

Good questions @Santiago Scort . To answer your questions, I need to start with some questions on my end. How much down payment do you have saved? What are the purchase prices like in your area? Will this be an owner occupied home? How long have you been on your job and or in your industry? What does your current debt ratio look like and how much will you rent your current home for?

How much is your current home worth and what do you owe on it? To properly guide you, you would need to answer these questions and more so a loan officer can determine what your options are?

SFR 95% LTV, owner occupy for a year, over and over again, each time the previous primary residence is converted to a standard long term rental with a single tenant who signs a standard 12 month lease, and makes a security deposit. The lease can allow for subletting.

@Kevin Romines  thank you for your response. 

By the time I make the purchase I plan on having $50,000 for the down payment 

Purchase prices in my area (Greater Fort Lauderdale) for a single family start around $220-$240K

The new home will be owner occupied 

I currently own a landscaping company and have been in the industry for about 7 years 

My current home is worth approx $250K and I still owe about $212K on it and should be able to rent it out for about $2,200 per month 

I'm not sure where my debt ratio stands exactly but my credit score is 717. 

Hopefully this paints you a better picture as to what my financing options may be.