House hacking in Melbourne,FL

4 Replies

Hi. I am for guidance on house hacking with a family in Melbourne FL. I want to buy a multi family property to cover mortgage costs so I can spend more time with my infant. Are there any experienced house hackers in my area that can provide some advice?

I currently own a single family house in Viera that we are looking to sell or rent out to purchase the multi family. However, renting out our home would not cover the cost of mortgage and taxes. We'd still have to pay roughly 500 per month. I've thought about renting out rooms in our house but the HOA doesn't allow this. Also, there aren't many multi family properties available in our area. So I guess I'm not sure what to do.

@Carly Oliff What exactly does your HOA not allow? I know most HOA's will not allow Short Term rentals but if you that is classified as less than 6 months. So in theory you could rent a room with a 6 month or greater lease. If you can rent the whole house then I see reason why you could not rent a room as long as it was long term. then again some HOA agreements may exclude this exact thing. Make sure you read it carefully and do not rely on the answers of a person. Even if someone at the HOA says you can't if the document says you can then you can.

Most HOAs in Viera prohibit anything less than 12 months and each specific community may prohibit individual room rentals but you have to check. The real issue is that many of those communities only have spots for two cars in the driveway and prohibit overnight parking on the street so that creates an issue for multiple renters. 

Are you used to newer construction and a more "country club" lifestyle? It'll be difficult to find a multi-family home in Brevard county that will meet (or even come close to) that standard of housing and make a good house-hack. Right now, there is very low inventory of "income" properties on the MLS and most of them are in Cocoa (not to knock Cocoa, but I wouldn't want to house-hack there).

Your best bet would be to find something off-market. Check the county tax records for properties that aren't technically duplex/triplex/quadplex, but something that has a separate building out back or mother-in-law suite.

If you click "More search options" you can go down to the "Property Use Codes" field and then click "Help" on the right side. This will bring up the list of property use codes (i.e. duplex, triplex, etc), so you can search by that and the zip code you're interested in. I tend to look for properties that haven't been sold in the last 20 years or so, but you can certainly search by your own criteria. Once you get a list of properties, you can send mailers out to the person/address on the "Mail to address" in the records.

Hope that helps! And good luck!

0 chance that I would try to make those numbers work. But I also would give much consideration to what was mentioned above. If you're coming from the description of your first home, and going to house jack in a multi unit I would just ensure you know what you're in for. I hope what I'm about to describe isn't going to be you, but I would be 100% sure before I made the move. 

i can see someone downsizing that heavily only to find it's not the life they want. Trying to return may be an uphill battle with a loss along the way. Think about the two options. Keeping the house has you negative cashflowing on the HOA house. So now you're losing money there. And by house hacking in the new property you are not getting great cash flow out of that... To break even you need to cash flow $500 on the new building, while taking that profit to pay for your tenant to live a better lifestyle than you. Imagine having to go take care of pretty problems in your beautiful house and then return to your house hack... To solve the mortgage problem you can sell the HOA house. Grab a small cash flow out of the house hack. That's definitely a better financial situation, but if you decide you can't do it anymore you have to buy a new house. Will the market be up or down? Who knows... But having negative cash flow or selling a house only to rebuy a similar house in a year is a bad idea in my book. Between closing costs, moving expenses, lost time, and potentially higher cost in an up market that situation has loss written all over it.

Have you considered just investing in cash flowing properties to help pay your mortgage? That seems like the much smoother path to me... 

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