First-TIme House Hacker Dallas TX

11 Replies

My goal is to house hack a 2-4 unit in the 75234 area.
I want to explore all my options, financing and buying wise.
I'm looking to connect with wholesalers, realtors, private/hard money brokers and mortgage brokers who are familiar with the area and are willing and able to work with a first time buyer.
I think I've learned as much as I can from studying, it's time to get out there and learn through experience!

Updated about 2 months ago

zipcode typo: 75223

Given the relative scarcity of multi family homes in the Dallas Area, would house hacking on a single family with a FHA loan/ 10% down conventional loan typically produce positive cash flow? I ran the numbers on multiple B/C properties in the DFW/ Arlington area, and CoC return was small or even negative.
Was wondering if anyone had a successful experience house hacking SFH.

@Anna Hummer you should try SFH and renting out the bedrooms. Some have ADUs that can be rented. Not much multi family inventory on the market and if you don't have trade skills or subcontractors it's going to be tough to buy a good deal, hire out the work to a contractor, and still make a decent return if any at all.

@Anna Hummer is there a reason you're only interested in one zip code? MFH's are so hard to come by in DFW as most don't tend to limit themselves to strictly one zip code. I own a MFH in 75061 and 75074 and it was just a matter of the MFH making sense and less of which zip code. 

@Anna Hummer and @Bill Xiong MFH is probably pretty hard to house hack here in DFW area unless you find a very unique circumstance. I'm thinking SFH is probably the better way to a 4bed 3bath house in non-HOA neighborhood, live in one bedroom and rent the others to your friends, family, co-workers, schoolmates. It's a great way to get started and probably the most feasible for people wanting to house hack. You'll find more availability of homes and you'll have a better chance at financing.

Anna - Welcome to real estate!

First - the best resource I can point you to is the bigger pockets networking page. There are lots of resources for realtors, lenders, etc. -->

Second - I would mostly agree with the other comments regarding it being difficult to house hack MFH in DFW and definitely agree that you should look at expanding your search area. Regarding the difficulty, I believe these statements are being made on the fact that it will likely not cover your ENTIRE monthly expense. That being the case, it doesn't mean that it won't work for you.

For example: If you were currently paying $2000 per month in rent and you went to purchase a $450,000 duplex that had a $3000 per month payment (inclusive of Insurance and Taxes). You could rent out one side for $1500 per month and this would save you $500 per month compared to your current housing. In addition, you could still rent out rooms on your side of the duplex to save you additional money. I started out doing this exact same method. I purchased a SFH that had a mother-in-law apartment on the back. I rented the MIL unit out and rented one of the bedrooms on my side out.

I wanted to post to encourage you to not be discouraged by the other post's. They are not wrong but there are other ways to look at it which could still result in you reaching your goals of house hacking a 2-4 unit house. House hacking is about reducing your monthly housing expenses. A home run would be cash flowing a house hack, but breaking even or paying significantly less is still a win. 

Take a look at your budget and real estate goals and go with the option that fits you best. Best of luck on your search! 

@Shane Griffin Thank you for your detailed response. You pinpointed my situation well. I pay about 2200 monthly, so reducing that is a big motivating factor. Yes, cash flowing would be ideal, but if I can reduce my housing costs by 50-75% and don't have to concern myself with yearly rent increases while building equity, I'll be happy.