Hello BP Community!
I have grown more and more interested in pursuing a rental property, but do not own a home myself. I’m looking into a house hacking strategy, but there are not many duplexes, triplexes etc. in decent neighborhoods in Southern California where I live.
I was wondering what other house hacking strategies there might be other than a owner occupied multi-family home?
Thank you for any feedback!
@Brock Jenkins I am curious where you are looking for a property and what your budget is for the property. Of course you could go the route of SFR and rent the rooms out, or my personal favorite in California right now is ADU House Hack.
The last strategy is something that take more capital, but gives a great amount of return on the income that comes in after the ADU is built. You as a primary homeowner can also do a Junior ADU too (this is only for a primary strategy head up), the SFR and ADU can be done on any investments even multifamily homes.
I agree with @Peter Mckernan . There are limited options for multi-family in good areas, and those that own them typically want to keep them for that exact reason. The SFR option while renting out rooms is cool if you're ok living with roommates. I personally really like the ADU option. And a great way to accomplish that with minimal extra cash is to look into tiny homes that can be put in your backyard once you own the home. Check out Back Porch Homes. They build, finance, and deliver these tiny homes that could fit on even a relatively small lot. Stephen McKee is part of the BP community so check him out and look into what they are doing. It's super cool!
Hey Brad! I really do not want to live with roommates since me and my girlfriend will be moving in together. I really like that idea of an ADU. And thanks for that tiny home resource. I will be looking into that!
Thanks for the response!
Hi Peter, I'm looking in the Riverside/Corona area specifically. I should have stated that I would like to avoid having roommates as me and my girlfriend will be moving in together. I really like the idea of an ADU from a detached garage.
We are trying to stay in the $350k-$400k.
Thank you for reaching out!
@Brock Jenkins You bet! And even better, Back Porch Homes is based in Riverside! So am I in fact, so if you ever need anything, let me know. I can introduce you to some folks, or we can swap stories and ideas over a beer downtown.
@Brock Jenkins Congrats on pursuing an investment property. To your point, it can be difficult to find duplexes in nice areas. Years back, I started by house hacking my SFR, which turned out to be a great decision. It was difficult with the girlfriend though lol. ADU is a great option. The thing to keep in mind is material cost. Lumber has gone up over 140%, steel, and copper are at an all-time high. I decided to pull out from building my ADU due to the cost associated with it.
I would suggest looking for homes that have alley access. This will allow more privacy for you and your tenant as they exit/enter the ADU. If I can help you in your search, don't hesitate to ask.
@Brock Jenkins great that you have a location pinpointed, and a price point. I'm working on an ADU in your area right now, if you have any questions let me know!
Thanks for the insight, Brandon!
It looks like I have a lot of research to do!