Tips for House House Hacking Large Single Families

2 Replies

Peace to the Forum!

My girlfriend and I are have been doing our research and have been inspired to buy our first investment property and want to employ the house hacking strategy.

Right now we are in the pre-requisite steps of bidding on Real Estate Agents and Lenders and already we have received a pre-qualification from one of the lenders we are bidding on.

We’re looking to House Hack Small Multifamily (Duplex, Triplex) Properties but with what we have currently we may not be able to find a Multifamily within our budget due to the market we’re looking into (North New Jersey area | Hudson country and Essex County) so we’re considering House hacking a large single family in which we would find a property with a basement, live in the basement and rent out the rooms

My questions specifically are:

• Is this a big NO? Should we stick with just investing in a multi-family and wait until we can get a higher pre-approval?

• What are some do’s and don’t(s) in regards to house hacking Single Family homes? Is it different from Multi-families

• Are there specific laws I absolutely need to watch out for before employing strategy?

• Are there any tips and tricks for us to get around certain laws and jurisdictions?

A little about myself I just finished the Bigger Pockets book on “Managing Rental Properties” And currently I’m reading “The Book On Rental Property Investing”

I appreciate all feedback and thank you for your time!

@Jelani Fearon

I house-hack a 4 bed 3 bath single family and it works out very well. Everyone’s area is different so check to see if there are any local ordinances but here in CO Springs there is a cap on the amount of unrelated people who can live under one roof, that’s about the only thing I have to worry about.

Other than that, it can work our very well if you:

1.) Screen your tenants thoroughly! Never cut corners here, set your standards and stick to them.

2.) Think about their schedules. If you have 4 people in a house who all have a 9-5 that may not work out. My three tenants and I have completely different schedules which helps.

3.) Be mindful of your local HOA (if there is one). Do they restrict street parking?

4.) Make sure your tenants will always have space to park

5.) Be very upfront about your standards and expectations. I’m extremely clear with my tenants that they are not to leave our dirty dishes or make noise at night.

Doing those things has made my house-hacking experience very positive (and easy).

Good luck!

-Dan

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