Skip to content
House Hacking

User Stats

33
Posts
17
Votes
Darius Wade
Pro Member
  • New to Real Estate
  • Dover, DE
17
Votes |
33
Posts

Could use some House Hacking tips for a new real estate investor.

Darius Wade
Pro Member
  • New to Real Estate
  • Dover, DE
Posted Nov 25 2022, 17:08

I am currently in the process of acquiring my first buy and hold multifamily property. My cash on hand is not enough to pay the 20% down payment for a loan so I have opted to put 5% down with a conventional loan. I chose this financing strategy instead of an FHA because I do not want to have mortgage insurance for the life of the loan. This will of course be my primary residence because it is not qualified as an "investment" property yet. So, with only one tenant in place, I would still owe around $350 a month for the duplex. So, with that being said would it be smart to aggressively pay down the mortgage while house hacking? My rational for doing so is to build up to that 20% equity in the home so that when I move out and put a tenant in my unit my margins can be increased. This is because at 20% equity my mortgage insurance will roll off the loan lowering my monthly payment by about $150 a month increasing my cash flow but lowering my COC return because more money is being put into the deal. Is this an ok option to take or should I just continue to save in order to get into another deal?

Loading replies...