Should I wait to begin my first house hack??

Question

I’m fresh out of college, living with my parents. Making 40K a year, with about 13k saved up (already been pre-approved for 150k loan), and I want to house hack. However, all the houses in my price range are either newly renovated 2 bed 1 bath and located in very bad areas or are 3 bed 2 baths in desperate need of rehabbing also in bad areas. If I jump in the market now, and interest rates continue to increase, will I be making a bad investment? Any advice is appreciated.

Danny Polanski · Answer

I would say you do not want to wait. You want to start young.

However, I would not house hack in a bad neighborhood. You need to find something that needs “sweat equity”, is ugly and outdated, etc. but in a good neighborhood.

Then Id watch a bunch of youtube videos and read some books on home maintenance and improvement.

JooYung Choi · Answer

If you jump into the market now and interest rates continue to rise, then I would say you would have made a good decision!

I would lean towards buying a distressed property that can be financed conventionally over a renovated one. Take on projects one at a time while you are living in the home and get the rooms rent ready ASAP so you can start house hacking. Force that equity and refinance when rates come down in the near future!

Benjamin Sulka · Answer

Noah,

I concur that getting into this game as young as possible is the goal. I'm in a similar situation and I'm looking to buy a place early next year and it's difficult to predict what is going to happen with interest rates. I want to start pursuing my strategy quickly but collectedly.

Don't rush into a decision. I like what Danny said above by finding a somewhat distressed property in a good neighborhood that is up and coming. Definitely do not want to start in a bad neighborhood.

Good luck!

Noah Ondike · Answer

100% agree, I would rather jump in and start ASAP but what if I take a year to increase my income/savings to be able to afford those houses in decent areas ?

Ryan Muska · Answer

What area are you looking and are you working with a bank that is investor focused?

I'd like to discuss your situation and possibly shed some light!

Should I wait to begin my first house hack??

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