House Hacking/ looking to add

Real Estate Deal Analysis & Advice
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House Hacking/ looking to add

Chris Coulombe
Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes

Investment Info:

Condo other investment.

Purchase price: $289,000
Cash invested: $10,000

House Hacking, currently renting two rooms, building equity while investing less than I did renting every month to own a home.

What made you interested in investing in this type of deal?

Want to choose who I live with, where I live, build equity as well as appreciate a home in the process and build my future.

How did you find this deal and how did you negotiate it?

Found it looking at homes in the area, knew I wanted to be near work and a lot of things nearby to make it enticing to others, I found a realtor willing to reduce their commission and negotiated the price down off of the asking with 3% concessions. Also received a conventional loan with a grant that allowed me to pay off debt as part of my qualifications for the loan.That way I recieved a grant, paid off debt, and found myself paying only 3.5%

How did you add value to the deal?

Found two reliable roommates so that I pay much less for my mortgage.

What was the outcome?

Still living there, hoping to rent my room out after a year.

Lessons learned? Challenges?

Things always break down. Learn how to calculate and separate expenses, have another account for managing income, dont be afraid to shop around for realtors and lenders. Some have different relationships with underwriters and some have more knowledge or experience.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Felix Corrall

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Nicholas FloydBusiness Member
NY · Member since 2026 · 208 posts · 80 votes
1mo

Chris, one thing you mentioned that really stands out is learning to separate expenses and shop around for lenders. That becomes even more important as you move from house hacking into additional investments.

From a business funding standpoint, I’d also look at building access to capital before you actually need it. Business lines of credit and 0% APR business credit cards for 9–12 months can be useful for eligible expenses like repairs, furnishing, maintenance, marketing, or unexpected property costs while helping you preserve your cash reserves.

The key is knowing which lenders fit your business profile and how their underwriting requirements differ. Having the right funding structure in place can give you more flexibility when the next opportunity comes up instead of having to scramble for capital after you find the deal.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1mo

    Chris, this is a great example of why house hacking can work so well as a first step, you’re reducing your personal housing cost while also starting to build equity and learn how to manage tenants.

    One thing I'd make sure you stay on top of is the tax allocation between the part of the condo you personally use and the rooms you rent out. Once you're collecting rent from roommates, you generally want to track the rental income and properly allocate eligible expenses such as mortgage interest, property taxes, insurance, HOA fees, utilities, repairs, and depreciation between personal and rental use.

    Depreciation is especially easy to overlook with a house hack. You may be able to depreciate the portion of the property being used for rental purposes, but you want the allocation documented correctly from the beginning rather than trying to reconstruct it years later.

    I’d also keep the rental activity in a separate bank account and track repairs versus improvements carefully. You already mentioned learning to separate expenses, that habit will matter even more as you add another property.

    And when you eventually move out and rent your current room too, revisit the tax treatment at that point because the property will be shifting from partially personal-use to potentially fully rental.

    You’re doing a lot of the right things early: keeping housing costs down, preserving cash, and learning landlording on a manageable scale.

    Happy to connect!

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  • Dan HandfordPro Member
    Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
    1mo

    Chris, this is a good example of house hacking doing what it is supposed to do: lowering your housing expense while you learn to operate a property. Separating the rental income and expenses into a dedicated account is especially useful. Before renting your own room after moving, I would verify the condo rules, lender occupancy requirements, insurance coverage, lease structure, and the cash flow with all three rooms occupied. I would also keep a repair reserve because the first year has already shown that systems do not wait for convenient timing. What monthly reserve amount has felt realistic based on the repairs you have seen so far?

    0Reply
    • Chris Coulombe
      OP
      Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes
      1mo
      Quote from @Dan Handford:

      Chris, this is a good example of house hacking doing what it is supposed to do: lowering your housing expense while you learn to operate a property. Separating the rental income and expenses into a dedicated account is especially useful. Before renting your own room after moving, I would verify the condo rules, lender occupancy requirements, insurance coverage, lease structure, and the cash flow with all three rooms occupied. I would also keep a repair reserve because the first year has already shown that systems do not wait for convenient timing. What monthly reserve amount has felt realistic based on the repairs you have seen so far?

      I dont know what that number is I think whats most important is a system to be able to itemize every individual item. Having a separate account to track expenses is next on my list. I think coming up with to dos to periodically check like a car. I think overall the house is in good overall condition, just about making sure all is well before I leave.
      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1mo

    Where did you get the lease you used for the roommates?
    Is it just a standard lease or how did you modify it for your rent-by-room situation?

    How did you screen them?

    How are you collecting rents & tracking balances?

    How are you separating your personal vs business income & expenses?

    All of this will be NEEDED once you move out and rent the last room.

    [email protected]248-209-6824
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    • Chris Coulombe
      OP
      Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes
      1mo
      Quote from @Drew Sygit:

      Where did you get the lease you used for the roommates?
      Is it just a standard lease or how did you modify it for your rent-by-room situation?

      How did you screen them?

      How are you collecting rents & tracking balances?

      How are you separating your personal vs business income & expenses?

      All of this will be NEEDED once you move out and rent the last room.

      Personally know them from my Church, is labeled a roommate agreement, was arranged as a 3 month lease and month to month after but intend to make longer at expiration. 

      All of my utilities are covered from my HOA except electric, which is split evenly amongst us. A minimum 30 day notice to leave. There hasnt been any extensive expenses yet related to the home that have needed to be included yet. Maybe some miscellaneous items for pest control, fan battery, air filter. Very minimal but intend to get separate credit union account for this. Currently only have two roommates so pretty easy to track. Both were prorated and set to pay rent the same time every month. Electric bill comes out before the 1st I give them until when its due to pay. I do have a list of items I paid for to furnish the home. They occupy two rooms and have their own bathrooms so occupy a large sq footage of the home along with shared space.

      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      1mo

      Great that it's gone smoothly for you - so far.

      What happens when it doesn't go smoothly - which is MORE likely to happen after you move out and rent out your room?

      How much time have you spent listing EVERYTHING that could go wrong and preparing for them?

      How will you handle the following, that warnings don't lead to improved behavior:
      - Not cleaning their dishes after cooking or a meal?
      - Leaving their laundry in the machines for days, so others can't use them?
      - Blocking the cars of the other tenants in the driveway
      - Using all the hot water by taking long showers?
      - Having friends over late, affecting the ability of others to sleep?
      - Etc.......

      [email protected]248-209-6824
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      0Reply
    • Chris Coulombe
      OP
      Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes
      1mo
      Quote from @Drew Sygit:

      Great that it's gone smoothly for you - so far.

      What happens when it doesn't go smoothly - which is MORE likely to happen after you move out and rent out your room?

      How much time have you spent listing EVERYTHING that could go wrong and preparing for them?

      How will you handle the following, that warnings don't lead to improved behavior:
      - Not cleaning their dishes after cooking or a meal?
      - Leaving their laundry in the machines for days, so others can't use them?
      - Blocking the cars of the other tenants in the driveway
      - Using all the hot water by taking long showers?
      - Having friends over late, affecting the ability of others to sleep?
      - Etc.......

      Most of those items were handled before they moved in. We meet once together at beginning lf the month to go over concerns, questions, problems we might have and clear the air. I am getting a dry erase board where we all allocate chores, a sign to indicate when washer is clean or dirty, and just have a system in place to make sure things are presentable. I personally let them know when I have guests over out of respect, so far that has helped. A new HOA company took over, I am hoping its better because the one concern I have is I might have to sign them all under one lease to abide by the P&Ps which is more difficult when I want to move out, but its way more profitable to rent room by room. Its been two months but so far its been great so far. I think I need to stay a year but my lender told me they wont deny my loan a year in after if I move sooner. My intention is to stay a year but the way I structured their lease I can change and alter it all.

      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      1mo

      Glad it's working for you so far, but again it will all change once you move out.

      Then, who will lead the monthly meetings?

      How have you put all of this into your lease, so it actually is required and not just voluntary?

      [email protected]248-209-6824
      Logical Property Management4.9458 Reviews
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      0Reply
    • Chris Coulombe
      OP
      Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes
      1mo
      Quote from @Drew Sygit:

      Glad it's working for you so far, but again it will all change once you move out.

      Then, who will lead the monthly meetings?

      How have you put all of this into your lease, so it actually is required and not just voluntary?

      I have a chat group for us together, and it really is simply about communication. I live here, and the next place I live I intend to be within 10-45 min away. I have a key and know their schedule, so I can come when they are at work but simply let them know. Its a different dynamic because there is mutual respect, we all attend church tougher. One roommate just brought a new thermostat he had from his old place and the other got us a camera to put outside along with a ring doorbell. When you help your tenants and communicate it seems like they are willing to work on things its crazy! Still haven't gone 3,6 months or a a year, but so far it seems promising. HOA changed groups so have to see if or how I can move out with potentially new HOA rules, and if not Ill have to go a different route with brrr's, flips and foreclosures. The leases are minimum 3 months then month to month after, but I find no need to seek new tenants if its working. 




      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      1mo

      "Everything's going fine so far", said the guy as he was falling from the top of the Empire State Building.

      You want to plan for the worst!

      [email protected]248-209-6824
      Logical Property Management4.9458 Reviews
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      0Reply
    • Chris Coulombe
      OP
      Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes
      1mo
      Quote from @Drew Sygit:

      "Everything's going fine so far", said the guy as he was falling from the top of the Empire State Building.

      You want to plan for the worst!

      If you want to have that attitude, provide some value and show me steps and processes to do that. Im brand new to all of it and am willing to learn. There isn't a reason to change something if it is working, and from what I have heard from others one of the most important parts of being in real estate is choosing good tenants, and I am blessed to say so far its looking that way. I don't think many landlords find instances where tenants/roommates are willing to buy items to add value to the house to make themselves and myself more comfortable. 
      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      1mo

      Why are you ignoring what I wrote, "How have you put all of this into your lease, so it actually is required and not just voluntary?"

      [email protected]248-209-6824
      Logical Property Management4.9458 Reviews
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      0Reply
    • Chris Coulombe
      OP
      Homeowner · Mesa, AZ · Member since 2026 · 10 posts · 3 votes
      1mo
      Quote from @Drew Sygit:

      Why are you ignoring what I wrote, "How have you put all of this into your lease, so it actually is required and not just voluntary?"


      I didn't ignore what you wrote, you just didn't like my response. Its in the lease about expectations. When we got together I sat down with them and we went over it line by line, encouraged them to ask any questions if needed and again, I meet with them at the beginning of every month. We attend church together and have dinner once a week give or take.  I am gonna have a dry erase board where we each have chores to ensure the house is adequate.Because I try to add things and do things to make their experience better they seem rather responsive to contributing to the home and making sure its in good condition. Thanks for asking these questions to help me recognize I actually have done some things right! 

      0Reply
  • Grant SchroederPro Member
    Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 598 posts · 312 votes
    1mo

    This is awesome @Chris Coulombe! Thanks for sharing!

    [email protected]541-231-1256
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  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 403 posts · 162 votes
    1mo

    @Chris Coulombe, one thing I’d consider before moving out is doing a “practice run” for a month or two where you manage the house as if you no longer lived there.

    Have rent, maintenance requests, shared space issues, chores, and communication handled through the same system you plan to use later. That way, you can see what still depends on you being physically there and fix those weak spots before your room becomes another rental.

    Right now, a lot of the system works because you’re in the house. The real test is whether it still works when you’re not.

    I like that you’re already thinking about this early. That gives you time to build the structure before you actually need it.

    [email protected]240-266-0291
    0Reply
  • Nicholas FloydBusiness Member
    NY · Member since 2026 · 208 posts · 80 votes
    1mo

    Chris, one thing you mentioned that really stands out is learning to separate expenses and shop around for lenders. That becomes even more important as you move from house hacking into additional investments.

    From a business funding standpoint, I’d also look at building access to capital before you actually need it. Business lines of credit and 0% APR business credit cards for 9–12 months can be useful for eligible expenses like repairs, furnishing, maintenance, marketing, or unexpected property costs while helping you preserve your cash reserves.

    The key is knowing which lenders fit your business profile and how their underwriting requirements differ. Having the right funding structure in place can give you more flexibility when the next opportunity comes up instead of having to scramble for capital after you find the deal.

    1Reply
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