Can you house hack a package of condos?

Question

While searching online I came across a package of 5 condos that is going for 255k, Each unit is renting for an average of $760, if I'm doing my math right, this makes the income to purchase price to 1.49% Given that they are a package deal, this is a great bang for your buck investment. However, can you even house hack a package of condos? I'm quite curious to look into this because if so, this would be a pretty sound investment. Thanks in advance!

Account Closed · Answer

I guess you can call it house hacking ,living in 1 unit and renting the other 4. What type of financing are you getting? 1 blanket loan form the owner would be ideal , If your rent is greater then your debt it could be a potential deal

Jerry Padilla · Answer

@Eric Piccione

You can live in one of the condos and purchase as your primary. The other 4 would be considered investment properties and require at least 15% - 20% down.

Jeff Bridges · Answer

The income to purchase ratio applies broadly to SFRs and not condos. With condos, you have to pay a condo fee on each individual condo unit, which is an additional expense not found on SFRs, making that ratio deceptive if compared directly against SFRs. The kicker would be finding out about the condo fee and how much it would reduce your cashflow. Condos are also complicated because you then need to find out if there are rental restrictions in place because they could prevent you from renting at all or other restrictions. Then financing is also complicated because conventional fannie underwriting has some requirements with owner occupant ratio and no one owner can own a certain amount of units. So you need to know the rules on that by asking a lender. My recommendation is avoid owning too many condos in one building. If there is an assessment to pay poorly managed building, you have to pay it 5 times. Lots of risk to you and very little reward (you still have to have 5 insurance policies, 5 condo fees, prob low cashflow.