Hi I’m Mickey. I’m in sales by day and am ready to make the house hack plunge. Im looking for my first home, which will be a house hack. A Duplex up to four plex in the Houston, TX market with a price range of 245000 or less and I would like for it to be move in ready. What should I consider for an exit strategy and what should I be looking at number wise when selecting a property. I haven’t used the calculators on BP yet. Any advice and encouragement will be great. I started lender shopping today. If you are in the houston market and are familiar with what I should be looking for, I’d gladly appreciate advice. Thanks for any support in this.
@Mickey Lawrence house hacking is all about compromise. You have to mix your personal residence with your investment property, so you will have to decide if you are going more towards cash flow/area you are ok with living in versus reduced cost of living/better area. I do a lot of business here in Chicago with investors who house hack, and that is always the struggle. In addition, if you want to see higher returns you typically have to buy a property where there is a bit of deferred maintenance. I often times counsel my clients to find the proverbial "little old lady" house where you can paint walls, refinish floors and bump rents a few hundred dollars! This is where the real wealth is made in the house hacking space in my opinion.
@John Warren Thanks so much for this advice. As a realtor how often do you look for properties for your client? Is this weekly if they are looking or bi-weekly? I want to know that due diligence is being done to get the right property from the agent and myself.
@Mickey Lawrence Welcome to BiggerPockets! Truly nice to meet you. Good luck going forward! 😁 House hacking can be a great start. Not an expert so I recommend the podcasts and reading books.
As for exit strategy, I say factor in what you want this property to gain you. House does it advance the dream. Wish you well!!
@Mickey Lawrence I look at the MLS daily, and I also have off market opportunities that come up from direct mail and networking. With that being said, most successful agents can't spend two hours per day on zillow looking for a buyer. There is give and take here for sure. With my buyers, I think I bring just as much value later in the transaction or after closing as compared to finding the deal. After closing is when they need referrals for a handyman, roofer or boiler guy.
As you look to find an agent, focus on their experience as an investor. Do they know their numbers? Do they have intimate local market knowledge for the sub market you are focusing on? Any agent can open a door, but not all agents know the process from the investor's point of view.
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