Newbie to real estate Investing, Looking at House Hacking to get started

[Sebastian Buckeridge]

Hey Everyone, Sebastian here!

I'm currently analyzing the multi-family properties in Indy for House Hacking. Curious if any investors in the Indianapolis area have any tips or guidance for me if I'm taking the right route with the current interest rate. I appreciate the help!

Thank you

[Austin Bull]

I'm in the same boat as you but in Arizona. I'll be curious to see what people say..

[Kristen L Garner]

Hi Sebastian! I also invest in Indianapolis. FHA rates are the best right now if you are able to use that to finance your house hacking. I'd be happy to run some numbers with today's rates for you if you want to DM me your scenario. Best of luck!

[Jonathan Aversano]

If you're a first time buyer, use an FHA loan with 3.5% interest, far better than the current rates you'll get on a traditional loan.

[Paul Stamm]

Hey Sebastian! House hacking is a great option to begin your real estate journey. It is so powerful to be able to have other people paying down your mortgage all while living at a low cost or even for free! I'd like to connect you with some of my team if you'd like to know more about where you can find a solid house hack in Indy.

[Tanner Pile]

@Sebastian Buckeridge

The more units you can get in your first house hack the better! 

This is mainly looking long term in having a better chance of cash flow on the property. You will also get the experience of being a property manager too. 

[Hamp Lee III]

Check out the Neighborhood Assistance Corporation of America (NACA) loan program.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

I wish you all the best.

[Ryan Thomson]

@Sebastian Buckeridge here is how I think about the numbers right now...

House hacking is tough to cashflow in year one (with current house price run-ups and interest rates) for a couple reasons:

1. You are living in one of the rentable units

2. You are only putting 5% down so your loan amount is much larger and therefore your mortgage payment.

I would consider your net worth ROI. What I mean by this is considering how much your down payment returns to your net worth (appreciation, loan paydown, tax benefits, AND rent avoidance). Don't forget to include rent avoidance in your numbers! You have to live somewhere.

[Sebastian Buckeridge]

@Hamp Lee III Thank you for sharing the Naca program, I just signed up for the workshop!

[Sebastian Buckeridge]

@Ryan Thomson Understood, thanks for sharing these insights! 

[Nick Giulioni]

Quote from @Sebastian Buckeridge:

Hey Everyone, Sebastian here!

I'm currently analyzing the multi-family properties in Indy for House Hacking. Curious if any investors in the Indianapolis area have any tips or guidance for me if I'm taking the right route with the current interest rate. I appreciate the help!

Thank you

 A couple of tips:

- Looks for things in the listing like Mother in law suite (those can be hidden gems)

- Make sure it's separately metered (you don't want to pay your tenant's utilities)

- Find a great agent who knows your local market

Hit me up if there's anything I can do to help you out here in Indy!

[Sebastian Buckeridge]

@Nick Giulioni Thanks for the tips Nick! Curious what is the mother in law suite? 

[Nick Giulioni]

Quote from @Sebastian Buckeridge:

@Nick Giulioni Thanks for the tips Nick! Curious what is the mother in law suite? 

 Usually they are little spaces that have their own kitchen, bathroom, etc and a separate entrance. Our first house had an apartment over the garage. it was great!

[Rome West]

Quote from @Sebastian Buckeridge:

@Hamp Lee III Thank you for sharing the Naca program, I just signed up for the workshop!

I to was planning on using this program,  only downfall for rei is that program requires you to make this your primary residence indefinitely. I'm sure you can find out a way to make it work for you but just wanted to throw that out there. Best of luck 

[Hamp Lee III]

Quote from @Rome West:

Quote from @Sebastian Buckeridge:

@Hamp Lee III Thank you for sharing the Naca program, I just signed up for the workshop!

I too was planning on using this program,  only downfall for rei is that program requires you to make this your primary residence indefinitely. I'm sure you can find out a way to make it work for you but just wanted to throw that out there. Best of luck 

There’s always exits to consider when you enter, but the good thing about this program is that it can get you started…especially if you’re able to purchase a multifamily. Having that for a few years can help you save and get ready for the next purchase. By then, the home may be eligible for a refinance…

Real estate investing is a long game. Some years are action-packed, and other years are not.

Just something to consider. 

I wish you all the best.