House hacking at 22 - What I regret...

House hacking at 22 - What I regret...

Jake AndronicoBusiness Member
Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes




I purchased my 1st home at 22 years old straight out of college. 

PP: Aug. 2019 - $356,900 w/ 20% down (borrowed a large chunk of the down payment). 

Refinance: Nov. 2021 - Property appraised for 480K, I completely paid off my second, and the interest rate went from 4.25% to 3.25%

Rents While Living In Property: $2,000 per month. 

Rents After Moving Out: $3,300

I was able to secure a private loan for part of my down payment, as well as have my parents co-sign on the loan (I am extremely fortunate and grateful). 

I lived in one room and rented the other four rooms to college students. 

After about 8 months, I wanted some extra income so I rented out half of my room to my 68 year-old co worker, and separated the room with a curtain....

Here is a photo: 

If I were to go back, I would NOT have done this, but it was a good learning experience. College kids and someone of that age under the same roof tend to butt heads....

Here are some key things I've learned after 4 years of landlording/house hacking: 

1. Communication is HUGE. 

- Being straightforward and honest is extremely helpful when managing tenants. ESPECIALLY when you're living with them. 

- Making sure their responsibilities and your responsibilities are clearly defined, giving heads up about workers coming in to do upgrades/maintenance, being proactive about renewals, deposits, strict about the lease agreement (but lenient when it makes sense), etc. has been instrumental. 

2. It was NOT sexy... 

- Especially renting by the room. I've been woken up late from parties, broken glass, revving engines, etc. 

- I've had to haul away a ton of trash, cans, dirty clothes, etc. Spackle and paint numerous times, fill holes in the wall, have had to wake up early to move my car due to the parking situation, etc. 

- Have had to sit down all five tenants and reset expectations in terms of cleaning (including the 68 year old co-worker).


3. When updating, it probably costs MORE and will take LONGER than you think.

- I was able to refinance, pull out $ to completely pay off the gentleman that loaned me part of the down payment, AND have $20k left over for renovations. (My payment ended up being LOWER still, going from 4.25% down to 3.25%). I was extremely lucky with this timing. This property was purchased in August of 2019. 

- I redid the paint, outlets, switches, flooring, countertops, got new appliances, etc. during the students winter break. I had less than 1 month to get it all done. I confirmed with all of them when they would be gone, and let them know what I was doing. 

- When they got back, there was only about 4-5 days that went by before it was finished, but it was scheduled to be finished a week before they got back. 

Here were the results: 



I have now moved out of the home and I am cash flowing roughly $1k after all things considered (I self-manage).

I regret a few things, but feel unbelievably lucky and grateful with how it went (especially with the timing of the purchase and refinancing). 


Keep pushing forward!!

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Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
3y
Quote from @Jake Andronico:
Quote from @Ray Hage:

I give you a lot of credit for starting young and making those mistakes early but most importantly learning a lot! Wish I had the brains to do that at 22! 


 Thank you Ray!! I had a lot of guidance :)


 Well at least you were smart enough to listen! That alone puts you ahead of a lot of people. As individual humans, we like to complain about others not helping or sabotaging our efforts (generally speaking)...but the reality is we usually get in our own way.

 My folks pushed me towards real estate when I was younger as well...I didn't start investing till 33 and even then, I didn't even take it half-a^^ seriously. I really started a bit more seriously at 38-39 lol. If I started seriously in my 20s, I would be probably 3-5x above where I am now (which is still in a very good place).

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  • Rental Property Investor · Northern Virginia · Member since 2022 · 127 posts · 123 votes
    3y

    Wow, this is so encouraging, inspiring, and motivating, Jake. May you find creative ways to finance this model a few more times while you are young!

    Shannon in VA

  • Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y

    I give you a lot of credit for starting young and making those mistakes early but most importantly learning a lot! Wish I had the brains to do that at 22! 

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Shannon Strickland:

    Wow, this is so encouraging, inspiring, and motivating, Jake. May you find creative ways to finance this model a few more times while you are young!

    Shannon in VA


     Thank you so much Shannon!! Means a lot :)

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Ray Hage:

    I give you a lot of credit for starting young and making those mistakes early but most importantly learning a lot! Wish I had the brains to do that at 22! 


     Thank you Ray!! I had a lot of guidance :)

  • Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y
    Quote from @Jake Andronico:
    Quote from @Ray Hage:

    I give you a lot of credit for starting young and making those mistakes early but most importantly learning a lot! Wish I had the brains to do that at 22! 


     Thank you Ray!! I had a lot of guidance :)


     Well at least you were smart enough to listen! That alone puts you ahead of a lot of people. As individual humans, we like to complain about others not helping or sabotaging our efforts (generally speaking)...but the reality is we usually get in our own way.

     My folks pushed me towards real estate when I was younger as well...I didn't start investing till 33 and even then, I didn't even take it half-a^^ seriously. I really started a bit more seriously at 38-39 lol. If I started seriously in my 20s, I would be probably 3-5x above where I am now (which is still in a very good place).

  • Member since 2023 · 7 posts · 4 votes
    3y

    Great job. Sounds like you did a lot right and learned a lot from the things that didn't go as right

  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    Great post Jake. I love that you shared all of this detail about your experience.

    My first deal was also a house hack (I started a little later than you, I was 25). And I had a similar experience.

    It was cool that my tenants (roommates) paid for my mortgage. But after a few years, I got really sick of being kept up late, dirty dishes always in the sink, having random girlfriends or other people come through the house, A/C running colder than I'd like, etc.

    In hindsight I wish I was more organized like you were. Had I set better expectations from the beginning maybe my experience wouldn't have been as bad. But I'll still never have roommates again :)

  • Investor · CO · Member since 2016 · 757 posts · 1k+ votes
    3y

    Thanks for sharing.

    Live and learn, but you have made the hardest step of all: the first!

    Keep it!

  • Member since 2023 · 2 posts · 0 votes
    3y

    How did you go about making a lease for your house hacking tenants?

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Marco Flores:

    How did you go about making a lease for your house hacking tenants?

    Marco,

    I'm extremely close with a RE attorney who got a template off the internet and then customized it. 

    There are many forms you can get for free (or purchase) online for your specific state. 

    I'm in Nevada, which state are you in? 

  • Member since 2023 · 2 posts · 0 votes
    3y
    Quote from @Jake Andronico:
    Quote from @Marco Flores:

    How did you go about making a lease for your house hacking tenants?

    Marco,

    I'm extremely close with a RE attorney who got a template off the internet and then customized it. 

    There are many forms you can get for free (or purchase) online for your specific state. 

    I'm in Nevada, which state are you in? 


     I'm in Lincoln, NE

  • Dave KushPro Member
    Frankfort, IL · Member since 2022 · 204 posts · 132 votes
    3y

    This is a good story. Especially for your age. When you earn it from the ground floor like that, you learn so much more and can appreciate what you have. Congratulations to you for going out there and getting it done!

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Marco Flores:
    Quote from @Jake Andronico:
    Quote from @Marco Flores:

    How did you go about making a lease for your house hacking tenants?

    Marco,

    I'm extremely close with a RE attorney who got a template off the internet and then customized it. 

    There are many forms you can get for free (or purchase) online for your specific state. 

    I'm in Nevada, which state are you in? 


     I'm in Lincoln, NE

    Nice. I'd recommend looking up template rental forms. You can also contact an agent w/ MLS access and they have template rental forms as well. 

    I use Turbotenant as my management software and they also have template leases for every state :)
  • Christine HullPro Member
    Member since 2018 · 8 posts · 2 votes
    3y

    Nothing like real life experience as the best teacher ever! Good for you

  • Member since 2022 · 405 posts · 455 votes
    3y

    Great experience the share, thank you! I think the takeaways you brought up are something for everyone to look out for. Communication with tenants has been a huge part of my own tenant management. 

  • Rental Property Investor · Orlando, FL · Member since 2022 · 20 posts · 12 votes
    3y
    Quote from @Scott E.:

    Great post Jake. I love that you shared all of this detail about your experience.

    My first deal was also a house hack (I started a little later than you, I was 25). And I had a similar experience.

    It was cool that my tenants (roommates) paid for my mortgage. But after a few years, I got really sick of being kept up late, dirty dishes always in the sink, having random girlfriends or other people come through the house, A/C running colder than I'd like, etc.

    In hindsight I wish I was more organized like you were. Had I set better expectations from the beginning maybe my experience wouldn't have been as bad. But I'll still never have roommates again :)


     I had a similar experience. Whoever I found as my roommate, they always had random person sleep over in the room, they always preferred to keep the AC lower than I do, etc. An interview or questionnaire is the key when looking for roommates. Now I will always ask a bunch of questions before letting someone in the house to be safe than sorry.

  • Rental Property Investor · Orlando, FL · Member since 2022 · 20 posts · 12 votes
    3y

    Wow while your story is really inspiring, I found the most impressive part is your credibility and reputation. Because the key is you were able to borrow a large chunk of down payment rather than doing generic house hacking. Based on your numbers, it turned out to be around at least 50k? Who would lend 50k+ to a grad fresh out of college??? What I found these days is that most of the time people's success is not based on the hardwork or intelligence but they personality. If they are credible and let people like them, it's easier to get enough funds and start to be successful.

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    3y

    Man, at 22, I would have given a lot to have parents who could have cosigned on a six-figure loan. I hope I don't see you all over these forums one day insisting you did it all by yourself and telling people who aren't as fortunate as you were that it's all about pulling yourself up by your own bootstraps no matter what your personal circumstances. You have a lot to be proud for, but without your parents (and the timing didn't hurt), none of this would have been possible, at least at this scale.

    But I doubt that's going to be you, not with the tone of this email. Good story, Jake. This is how real people get a real start in real estate, not some fantasy of easy money and watching others do what must be done.

  • Rental Property Investor · San Diego, CA · Member since 2019 · 48 posts · 40 votes
    3y

    @Jake Andronico what a great story! Thanks for sharing. It's so awesome that you've gotten this early guidance and support to get started so early. I see a very bright future for you! Not only in building wealth by starting early, but also just everything you're learning about life and being a productive successful person. Congrats and keep pushing forward!

  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    3y

    Congrats! Sounds like a cool deal. I also did my first house hack it was a 4 unit though but around that same period with a cashout refi brrr in 2020. Was an awesome experience and very rewarding to this day. 

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Jim K.:

    Man, at 22, I would have given a lot to have parents who could have cosigned on a six-figure loan. I hope I don't see you all over these forums one day insisting you did it all by yourself and telling people who aren't as fortunate as you were that it's all about pulling yourself up by your own bootstraps no matter what your personal circumstances. You have a lot to be proud for, but without your parents (and the timing didn't hurt), none of this would have been possible, at least at this scale.

    But I doubt that's going to be you, not with the tone of this email. Good story, Jake. This is how real people get a real start in real estate, not some fantasy of easy money and watching others do what must be done.

    Well said. I definitely know a lot was given to me, and I am extremely grateful everyday. 

    I tell my parents often that it would not have been possible without them, and whenever I tell people about my experience I want to make sure they understand that and the luck of the timing as well. 

    At the same time that made me want to put a ton of work in even more, because I would feel so stupid to have squandered such a rare opportunity.  
  • House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
    3y

    @Jake Andronico "it was not sexy". Very well put haha. When you tell your friends you are a real estate investor, they want to hear you are investing in flips and cool multifamily properties. Not owner occupied house hacks.  Excited to hear the details of your next success story!

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Ben Einspahr:

    @Jake Andronico "it was not sexy". Very well put haha. When you tell your friends you are a real estate investor, they want to hear you are investing in flips and cool multifamily properties. Not owner occupied house hacks.  Excited to hear the details of your next success story!

    @Ben Einspahr Haha, yes exactly. There's actually quite a few friends I do not recommend REI to, or when I tell them what I've done and see photos they get a lot less excited very quickly...

    Certainly not for everyone (especially house hacking) - but that's why I love thinking about this quote when I'm in a difficult situation: 

    "This is what hard FEELS like. This is why most give up, and this is why most don't succeed. Keep going". 
     

    Has helped a lot in those moments. 

  • Real Estate Broker · Newport News, VA · Member since 2020 · 95 posts · 83 votes
    3y

    Haha, househacking was the best thing long term but can be a headache in the short term.  A little bit of pain now for prosperity later - thats the motto with this game haha!  Keep it up!

    Axiom Property Group4.934 Reviews
  • Cleveland, OH · Member since 2022 · 811 posts · 578 votes
    3y

    Jake, 

    This is an awesome story! I'm 22 right now and my first deal is going to be a house hack. Not quite the way you did it (I don't think my girlfriend would want to live with a 68 year old man, Lol). 

    Looking to purchase in the early summer of 2024 once I pay down some of my debt-to-income from student loans. 

    I'd love to connect and hear about your experience! 

    All the best,

    Ben

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