In Need of Your Story (House Hacks)

House Hacking
4yFollow

In Need of Your Story (House Hacks)

Ethan Tomlinson
New to Real Estate · Idaho Falls, ID · Member since 2022 · 4 posts · 4 votes

Hello! I am a 19 year old, I'm currently in the process of saving up money to buy my first house hack. I want to work on a big project showing the power of house hacking and I am trying to convince some of my friends and family to look into it. Part of that project was going to be putting together some sort of list/document of people's success stories. Whether a comment on this thread or a personal message to me, either works. It would just be something along the lines of just: 

-Your first name (unless you say you don't want me to use it, I wont)

-How much you were paying for rent before house hacking 

-What type of property you started in (can also include the details of the price of home/mortgage/how many rooms/what city/the rehab/literally whatever you wanna include, or not)

-What you were paying (or being payed) to live somewhere after the first house hack process. 

-You, just mentioning that I have permission to use your inspirational story

I hope that all makes sense, I would GREATLY appreciate literally any comment. These stories would also just be extra motivation for me as well. I also hope this isn't against the rules. If it is, mods just let me know or I guess take the post down. Thanks!! ((:

3Reply
26 views

Most Popular Reply

Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Ethan Tomlinson:

Hello! I am a 19 year old, I'm currently in the process of saving up money to buy my first house hack. I want to work on a big project showing the power of house hacking and I am trying to convince some of my friends and family to look into it. Part of that project was going to be putting together some sort of list/document of people's success stories. Whether a comment on this thread or a personal message to me, either works. It would just be something along the lines of just: 

-Your first name (unless you say you don't want me to use it, I wont)

-How much you were paying for rent before house hacking 

-What type of property you started in (can also include the details of the price of home/mortgage/how many rooms/what city/the rehab/literally whatever you wanna include, or not)

-What you were paying (or being payed) to live somewhere after the first house hack process. 

-You, just mentioning that I have permission to use your inspirational story

I hope that all makes sense, I would GREATLY appreciate literally any comment. These stories would also just be extra motivation for me as well. I also hope this isn't against the rules. If it is, mods just let me know or I guess take the post down. Thanks!! ((:














I was a sophomore at The Ohio State University (OSU) and I knew I wanted to do a bigger thing and get into the Real Estate game. I did not have enough money for a downpayment so I asked my grandmother to loan me the money for the downpayment. She gave me $12k and thus started the search. I found this duplex on OSU’s campus for $305,000. It went on the market and I dragged my feet too long, “analysis paralysis.” I learned a quick lesson you have to act fast! If a deal comes and the numbers make sense then you have to act. God knew this was going to be our first one because it came back on the market a few months later. We put an offer in and it got accepted. Long story short we rehabbed it putting $50k into it. We had people live with us while doing so (it was the cheapest rent around) and then we moved out and rented each one side for $1,350 and the other for $2,565. We refinanced it at $590,000. All in all, we gained $235k in equity from our initial $67k in the deal, that’s a 350% return. This can be you too. 


You have my permission to share my story. If you have any more questions, I am always willing to help or answer them. 
4Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Eric Yu
    Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes
    4y

    Feel free to check out my profile & first deal for more context. 

    Tldr; $3000 in rent, had a property with a guest ADU on it, Airbnb'ed the main house, got ~$3k net per month on it.

    Free to share my story 

    2Reply
  • Nicholas Coulter
    Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
    4y

    @Ethan Tomlinson 

    Nicholas Coulter

    Paying 2k a month!

    Got a 4 bd 2 ba SFH - Sale prices was 420k in So cal in 2020. Redlands to be specific.

    My mortgage was $2,356 with 5% down and I was able to rent out all the rooms in 3 weeks of moving in for $2,400! So in the last 2.5 years I have paid 0 mortgage expense.

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Ethan Tomlinson:

    Hello! I am a 19 year old, I'm currently in the process of saving up money to buy my first house hack. I want to work on a big project showing the power of house hacking and I am trying to convince some of my friends and family to look into it. Part of that project was going to be putting together some sort of list/document of people's success stories. Whether a comment on this thread or a personal message to me, either works. It would just be something along the lines of just: 

    -Your first name (unless you say you don't want me to use it, I wont)

    -How much you were paying for rent before house hacking 

    -What type of property you started in (can also include the details of the price of home/mortgage/how many rooms/what city/the rehab/literally whatever you wanna include, or not)

    -What you were paying (or being payed) to live somewhere after the first house hack process. 

    -You, just mentioning that I have permission to use your inspirational story

    I hope that all makes sense, I would GREATLY appreciate literally any comment. These stories would also just be extra motivation for me as well. I also hope this isn't against the rules. If it is, mods just let me know or I guess take the post down. Thanks!! ((:














    I was a sophomore at The Ohio State University (OSU) and I knew I wanted to do a bigger thing and get into the Real Estate game. I did not have enough money for a downpayment so I asked my grandmother to loan me the money for the downpayment. She gave me $12k and thus started the search. I found this duplex on OSU’s campus for $305,000. It went on the market and I dragged my feet too long, “analysis paralysis.” I learned a quick lesson you have to act fast! If a deal comes and the numbers make sense then you have to act. God knew this was going to be our first one because it came back on the market a few months later. We put an offer in and it got accepted. Long story short we rehabbed it putting $50k into it. We had people live with us while doing so (it was the cheapest rent around) and then we moved out and rented each one side for $1,350 and the other for $2,565. We refinanced it at $590,000. All in all, we gained $235k in equity from our initial $67k in the deal, that’s a 350% return. This can be you too. 


    You have my permission to share my story. If you have any more questions, I am always willing to help or answer them. 
    4Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    My friend's landlord was selling a 2 bed/1 bath duplex and I had bought it off market here in Columbus for $227,000. I applied my commission as an agent to the down payment, so I was able to buy this for less than $5,000. My total monthly payment is $1700, leasing the other side out for around $1200 and having a friend move in for $500 a month to live for free essentially. I had gotten a decent amount of equity on it from the start so I am currently getting a HELOC to be able to take down other deals! Best of luck getting started! @Ethan Tomlinson

    [email protected]614-963-3340
    1Reply
  • Taylor Graham
    Accountant · CT · Member since 2021 · 4 posts · 1 vote
    4y

    First of all, good for you getting into something like this so early in your life! 

    Taylor and Maja G.

    We were paying $1,200 in rent per month.

    We bought a two-family, purchased for $245k, main reno was converting heating to gas (mainly to save money this winter) which was about $15k, everything else we did on our own, cleaning, painting, filling holes etc. We used an FHA loan with 3.5% down. We live on 1st floor (2 bed 1 bath), mortgage is ABOUT $1,800, and we're renting out 2nd floor for $1,300 (1 bed 1 bath).

    We rented previously and purchased in Connecticut, smaller city - and safe. 

    You have permission to use our story :)

    Best of luck!

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    4y

    My first purchase was a house hack before the term.  It will start not very impressive, but wait until the now scenario.

    I purchased a 3/2 with 2 car garage for $167k with payment (PITI) of $990/month. I rented one BR for $350/month. Not impressive, but I had 2 BR, a private bathroom (roommate used the common bathroom), the yard, and the garage so it seemed fair but in reality I likely was not charging enough to cover maintenance/cap ex, etc.

    today the rent is $3500/month and the property is worth ~$1M. 

    Not bad for my first RE purchase. 

    Good luck

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    House hacking is a no brainer for young people. I was already too far down in my life and corporate career to do it myself, but as a real estate agent I have helped a lot of people hacking a duplex. 

    Over the years probably more than 100 and while I keep in touch with past clients and often help them with landlording questions I can only think of only one client who has sold his duplex - because he moved away (and made good money on the sale). 

    Everyone else is either still there, or has kept it as a income property renting both sides and bought a single family home, which is now subsidized by the duplex income, or some (but only about a quarter) have bought one or more additional duplexes. After one year you can move and qualify again for a 5% down owner occupied loan.

    There are a number of great books on the topic and you can also take a look at my YouTube channel, I have a 5 part series about house hacking in Milwaukee. But I would say this: don't convince your friends to partner with you, you can just rent to them ;-)

    0Reply
  • Scott KronePro Member
    Investor · Northbrook, IL · Member since 2017 · 352 posts · 295 votes
    4y

    @Ethan Tomlinson - The federal government has encouraged house hacking with the tax laws.  If you are single and live in the house for two years, the income you make on the sale is tax free up to $250k.  If married, the limit increases to $500k.  As a result of this, my wife and I have implemented this strategy quite a few times.  We bought a pre-construction condo, lived in it for 2 years, and flipped it.  We bought another pre-construction condo, lived in it for a year, and flipped it.  We then bought a single family home, put a second story on it, lived in it for 2 years and flipped it.  We then bought a home destroyed by fire, built a new home, lived in it for 2 years, and flipped it.  We then bought a old barn/garage/house, tore it down, built new, lived in it, and flipped it.  We then bought a home, tore it down, and built new.

    Each time, we got an interest only arm loan for 3 years.  Inessence, we were "renting" our home while getting tax deductions in the income we made, the interest we were paying, and the real estate taxes we were paying.  It was an effective way for us to build equity, and other goals we had.  I share this with anyone looking to build their equity.  It is still an effective tool.  Lending conditions have changed, but the concept still remains solid.  You just have to be willing to move every few years.  Many people don't desire that.  We just kept moving within a 15 minute drive of our end goal location.

    0Reply
  • Bradley Dosch
    Real Estate Agent · Seattle, WA · Member since 2019 · 301 posts · 188 votes
    4y

    Hey Ethan! Awesome engaging and interactive post - very fun idea. Here are my answers:

    My name is Bradley Dosch

    I was paying $800/month to live in some student housing in college

    My first house hack was a single family house with a basement in Littleton, Colorado. I bought it for $366,000 in October 2019 with a 3% down conventional loan. I lived there for 13 months and put in about $60k worth of renovations over the time I lived there. There were four bedrooms total. My partner and I lived in the basement and rented out the main level. 

    I was paid $50/month to live there.

    You have my permission to use my story

    I'm currently on my third house hack.

    Let me know what other questions you have.

    Thanks again Ethan!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free