House Hacking in a SFH
Hi, I moved to Charlotte last year and have been thinking of trying to house hack. Just looking in around, I don't really see many options for multi-family homes. I was thinking about house hacking in Charlotte with a Single Family Home.
Has anyone done this? Any things I should be considering if trying this? My concern is that the renter options would be limited
But overall I think this would help me get "into the game". Even if it does not cash flow, if I can get it for equal or less to what I pay in rent, then it would be a win.
@Mike Lee welcome to BP; you found the right place to start house hacking in Charlotte. As a local investor and realtor, I've had the pleasure of assisting many BP members in their search for an SFH house-hacking property. The CLT market has historically a small amount of MFH on the market, and if you find a duplex quadplex, most likely they're not in good locations. A lot of people I know rent out rooms in the SFH and start this way house hacking. If you have any questions or would like to discuss your options, please don't hesitate to contact me via phone or text/PM.
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Real Estate Agent South Carolina (#305372) and North Carolina (#305372)
- Kai Kopsch Realty One Group Select
Get creative- try and see if a friend or family needs a place to stay and rent out by bedroom. It's not as ideal, but it's still feasible and helps with mortgage payments. Consider using facebook groups to find tenants as well, just carefully vet them.
Renting out bedrooms is more possible than you think. People are okay to have roommates for lower rent than a 1 bedroom unit. I have also done a furnished bedroom on airbnb as another avenue incase finding consistent tenants is not available. facebook market place and roommate .com are great ways to find tenants.
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#1 House Hacking Contributor
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@Mike Lee the fact that you recognize that "even if it doesn't cash flow... it's still a win" puts you in a fantastic spot.
For single family homes I look for a way to make a second unit in it. Convert a garage, walkout basement, cottage on the back. OR lots of bedrooms to rent out.
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Real Estate Agent Colorado (#100092341)
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Thank you for all the replies! I will definitely look more into house hacking and see what the numbers say for me.
Hi Mike! House hacking in Charlotte is very attainable! Options for Multi-family are limited. You might have more luck looking for an "in-law suite". Rent by the room is also very common! You can rent by the room long term, month to month (furnished finders or Facebook Marketplace), or daily (Airbnb).
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#4 House Hacking Contributor
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Everyone needs a place to live. It comes down to price.
Go on Facebook Marketplace and in Facebook Groups and see what people are offering. This will give you an idea of price range and desirable locations.
You need to check the laws there but maybe there are other creative options. For example converting the SFR into a duplex (through an Accessory Dwelling Unit or otherwise).
Multifamily will be very tough to find in the Charlotte area and surrounding towns/cities. I recently bought a SFH in Kannapolis about 20mins from Charlotte and rent out my second room.
It may take a few weeks to find a good tenant but it is 100% worth it to take the time. Posting on Facebook Marketplace is a good way to do this since you can see their profile. You can also be a bit more picky since it is owner occupied.
It will probably not cash flow but the point of House Hacking is to cut down your expenses to save for repairs or save for the next property. Whether you save $100 or $1,000, that is still money you're keeping in your pocket and should be counted as a win.
I don’t know Charlotte market but I would recommend you to look if there are properties which you can convert a garage to a living space or maybe to find something with in law suite.
If you’ll decide to go on renting a room, take the time to vet the tenant even more than usual (you need to decide if that is someone you can live with).
Good luck!
Quote from@Mike Lee:
Hi, I moved to Charlotte last year and have been thinking of trying to house hack. Just looking in around, I don't really see many options for multi-family homes. I was thinking about house hacking in Charlotte with a Single Family Home.
Has anyone done this? Any things I should be considering if trying this? My concern is that the renter options would be limited
But overall I think this would help me get "into the game". Even if it does not cash flow, if I can get it for equal or less to what I pay in rent, then it would be a win.
Hello @Mike Lee! Thanks so much for posting this question! I am new to real estate investing. I recently purchased a house to flip but considering House Hacking to obtain additional funds for investing. I am looking to renting out our current home, since we need to downsize as we recently became empty nesters, I want to purchase a home with a walk-out basement but my husband is against sharing the same roof with a stranger...keep us posted on how the house hacking goes. GOOD LUCK!
Hey @Mike Lee! Great question, I was in a similar position when I was working on my 1st house hack in 2021. Multi-family options were limited and single-family allowed me to be in better areas, newer home, and more in line with my lifestyle.
But with house hacking there will always be some sacrifice in comfort but for the exchange of financial freedom, flexibility, increased savings rate, ect, 100% worth it IMO
I dont know charlotte but generally AT LEAST 4 bedrooms or spaces (ADU/garage/basement) and if you can push 5+ will put you in a good spot at least here in Austin. Second rule with be to have enough bathrooms to support the # of beds, no more than 2 people sharing one bathroom. There's more but this will get you started on the right track.
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Real Estate Agent Texas (#776380)
- The Moorhead Team
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- https://www.devindang.com/
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#1 House Hacking Contributor
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#1 House Hacking Contributor
- Real Estate Agent
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Quote from @Mike Lee:
Hi, I moved to Charlotte last year and have been thinking of trying to house hack. Just looking in around, I don't really see many options for multi-family homes. I was thinking about house hacking in Charlotte with a Single Family Home.
Has anyone done this? Any things I should be considering if trying this? My concern is that the renter options would be limited
But overall I think this would help me get "into the game". Even if it does not cash flow, if I can get it for equal or less to what I pay in rent, then it would be a win.
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.
You know this, but don't forget all the other ways real estate makes you money. Paying down your mortgage and owning an asset that will appreciate over the long term.
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Real Estate Agent Colorado (#100092341)
- 719-290-4640
- [email protected]
Quote from @Mike Lee:
Hi, I moved to Charlotte last year and have been thinking of trying to house hack. Just looking in around, I don't really see many options for multi-family homes. I was thinking about house hacking in Charlotte with a Single Family Home.
Has anyone done this? Any things I should be considering if trying this? My concern is that the renter options would be limited
But overall I think this would help me get "into the game". Even if it does not cash flow, if I can get it for equal or less to what I pay in rent, then it would be a win.
Hey Mike,
There are not a surplus of multi-family in the Charlotte Metro area. I personally have completed two house hacks in the Charlotte area and I can speak from experience. Your renter options will not be limited but it will be determined by your criteria and location. Message me back so we can get on a call.
I have done 3 house hacks in Charlotte. I agree with others in this thread identifying the fact that if there is a multi-family property, it is probably in a very sketchy area that you would not want to live in. Definitely focus your search on properties that have at least 4 bedrooms and 2 bathrooms. Newer/renovated properties will help with searching for quality roommates. I would also suggest having professional pictures taken.
I currently house hack in my SFH in Virginia. I got a bit lucky in having a 3bed/3.5 bath home, and something as close to equal beds and bath as you can get will work you wonders. During my marketing process, though my listing stated it, that's one thing people were interested in. I listed it on Facebook groups but also on websites like roomies.com. I ran screenings through turbotenant.com, which is very comprehensive (there are plenty out there though). That gave me credit history, income verification, criminal records, eviction records, etc and helped me build out a thorough lease. The applicants pay for their screenings and I chose the most qualified tenants after having conversations with them and feeling like we'd be a good fit. They honestly stay in their rooms 99.9% of the times, and if you offer a furnished option, you can charge a bit more. Message me if you'd like to talk more. I canhelp!
Hello Mike, I am also in the Charlotte, NC area. I currently work in Hickory and rent in Newton. House hacking is also my strategy near term. There have been a few multi-family options in the small towns outside of charlotte and I'm hoping to find a good opportunity that way.