To begin, I'm an Animal Science student from Cornell who is also interested in investment housing. I hope to learn how to have a successful, diverse and large portfolio so that one day I will not have to depend on working 9-5 to put food on the table.
@Courtney Walsh , learn as much about house hacking as you can. In my opinion, house hacking a 3- or 4-unit property using FHA 3.5%-down financing is in my opinion the best option for a young person looking to get started investing in real estate. It frees up so much cash to invest elsewhere. It's really a no-brainer if you're throwing away money every month making somebody else rich.
One thing to keep in mind when looking for an FHA owner-occupied triplex or fourplex is that 85% (75% in certain states) of the market rents on all the units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance). This is known as the self-sufficiency rule. It only applies to 3- and 4-unit properties (not SFRs or duplex) bought using FHA financing. I put together a spreadsheet here to help potential house hackers quickly analyze whether or not a property qualifies. There are other FHA requirements concerning which you should contact your local lender, but determining whether or not a triplex or fourplex meets the self-sufficiency rule is a good place to start as this rule will immediately eliminate many properties from your search.
Good luck and reach out to me with any questions!
@Courtney Walsh welcome to Biggerpockets! I would suggest listening to the podcast and learning as much as you can about the real estate industry.
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