House Hack

7 Replies

So I am currently looking at a 3 bedroom house in shoreline, Washington.  Purchase price = 360k 

My mortgage is going to be around 2150.  however I am planning on renting out the other 2 rooms.  i am aware of the 1 percent rule, but I am also going to be living in the house for a few years or so.  Any idea what price i should be renting out the other 2 rooms for?

as opposed to just going blind

thanks

cam

You could always do some online research in your area and find a decent ballpark for those room rates - look at what rooms are renting for on Craigslist in your area code - as well as any other rental sites that allow people to post rooms for rent. And from there you can always post the ads for them and gauge the level of response you get for them at that initial price. If you're not getting much action, drop em down a bit and try again.

Brian's advice is exactly what I've done with all my rental properties. Looking at comps on Craigslist, I see a lot of rooms in the $500-$600 range. Granted, I don't know the year, condition or size of the home you will be buying. If you're near the community college, you could play up the proximity.  Shoreline's a great place to buy with the future light rail station coming in!

Originally posted by @Cameron Brulotte :

So I am currently looking at a 3 bedroom house in shoreline, Washington.  Purchase price = 360k 

My mortgage is going to be around 2150.  however I am planning on renting out the other 2 rooms.  i am aware of the 1 percent rule, but I am also going to be living in the house for a few years or so.  Any idea what price i should be renting out the other 2 rooms for?

as opposed to just going blind

thanks

cam

 Along w/ craigs list check out AirBnB to see how much rooms are renting for (on a short term basis) in your area.  You may make more $ on the short term rental vs long term lease.

@Brandon Turner   has been utilizing Rentometer.com as a possible source. He shows it in his webinars so hopefully that might help. 

Another question on house hacking....

Assuming you qualify, can a person house hack on commercial multi-family (5 units or more) and get the same potential benefits such as low deposit (3-5%) and only a 1 year live-in requirement?

I see plenty of 2-4 unit residential references but no mention of commercial multi-family.

Thanks to anyone that can clarify.

Originally posted by @Troy Williams :

Another question on house hacking....

Assuming you qualify, can a person house hack on commercial multi-family (5 units or more) and get the same potential benefits such as low deposit (3-5%) and only a 1 year live-in requirement?

I see plenty of 2-4 unit residential references but no mention of commercial multi-family.

Thanks to anyone that can clarify.

 No.  All the secondary market loan buyers we use require them to be non owner occupied

Thanks Stephanie!

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