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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  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    Good stuff @Jake Andronico

    The Assumable Guy544 Reviews
  • Cleveland, OH · Member since 2022 · 826 posts · 578 votes
    3y
    Quote from @Christopher Jason Lloyd:

    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!

    "A little bit of pain now for prosperity later" - Love that 
  • New to Real Estate · Charlotte, NC · Member since 2022 · 10 posts · 27 votes
    3y

    Thanks for sharing! Super inspiring but not sure I could do a curtain-in-room situation. Kudos to you! Looking for a home to househack at this 7.3% interest rate life we currently live so reading these stories get my spirits up!

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y

    @Benjamin Sulka

    Nice man!! Haha yes, I was single at the time. 

    Looks like you're in Cleveland which is a much more affordable market. It can certainly be done. 

    I was able to save $45k in 15 months waiting tables and selling things on eBay (would be happy to show you what I was doing) - but I sacrificed A LOT (I really did not have friends or a life). 

    You do not need to go that extreme, and as I get older I'm understanding more and more of the value of balance. 

    Having a significant other definitely changes things, but for me it's been very positive :)

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y

    @Danielle Campos

    It was certainly a lot of sacrifice of convenience. I do NOT recommend for everyone (most people honestly haha), but ultimately glad I went through the experience. 

    Yes interest rates are certainly a lot higher which makes things more difficult for sure. 

    I would say having cash reserves when buying a place, especially for less than 20% down is huge. 

    I will make a post later today about the things that have gone wrong in this house, which was quite a few. Savings quite literally saved me. 

  • Cleveland, OH · Member since 2022 · 826 posts · 578 votes
    3y
    Quote from @Jake Andronico:

    @Benjamin Sulka

    Nice man!! Haha yes, I was single at the time. 

    Looks like you're in Cleveland which is a much more affordable market. It can certainly be done. 

    I was able to save $45k in 15 months waiting tables and selling things on eBay (would be happy to show you what I was doing) - but I sacrificed A LOT (I really did not have friends or a life). 

    You do not need to go that extreme, and as I get older I'm understanding more and more of the value of balance. 

    Having a significant other definitely changes things, but for me it's been very positive :)


     Jake, 

    I'm definitely doing everything I can to cut back my spending habits within reason. I wasn't a big spender in the first place but I'm really trying to only spend on necessities to put as much money as possible towards a reserve. 

    Thanks for sharing your experience! 

  • Cleveland, OH · Member since 2022 · 826 posts · 578 votes
    3y
    Quote from @Danielle Campos:

    Thanks for sharing! Super inspiring but not sure I could do a curtain-in-room situation. Kudos to you! Looking for a home to househack at this 7.3% interest rate life we currently live so reading these stories get my spirits up!


     Welcome to the House Hacking forums! 

  • Rental Property Investor · Canton, OH · Member since 2019 · 9 posts · 8 votes
    3y

    @Jake Andronico

    Great story Jake! House hacking can definitely be a challenge but it is well worth it. I feel like one thing that I commonly hear when someone is house hacking and fixing up the place themselves is that it always takes longer than expected. I was guilty of this! Did you consider hiring the remodel out since you had a tight window during the student's winter break?

    Thanks,

    Andrew
    @Jake Andronico

  • West Palm Beach · Member since 2023 · 21 posts · 31 votes
    3y

    Awesome job. With some much going on, those were your only mistakes. Sounds like you handled everything very well

  • House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
    3y

    @Jake Andronico great post title. Got me to click :)

    Way to crush it and set yourself up for long term wealth building!

    Having parents co-sign for the loan (if possible) is such a powerful tool that I do not see used enough.

    You mentioned renting to college students? Were these people you already knew? I have found it very helpful to have their parents co-sign on the lease agreement too.

    Rent by the room house hacking is not sexy if people do not "get it". After they see the full benefits (decreased living expenses, appreciation, debt pay down from your tenants, depreciation), then their mind will change :)

    What is the business plan transitioning from HH#1 to HH#2?

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

    @Jake Andronico

    Great story Jake! House hacking can definitely be a challenge but it is well worth it. I feel like one thing that I commonly hear when someone is house hacking and fixing up the place themselves is that it always takes longer than expected. I was guilty of this! Did you consider hiring the remodel out since you had a tight window during the student's winter break?

    Thanks,

    Andrew
    @Jake Andronico

    I did a limited amount myself and hired out quite a few things (hence the time delays). 

    Good to have clear deadlines but overshoot them with a bit of buffer when possible! 
  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y
    Quote from @Ben Einspahr:

    @Jake Andronico great post title. Got me to click :)

    Way to crush it and set yourself up for long term wealth building!

    Having parents co-sign for the loan (if possible) is such a powerful tool that I do not see used enough.

    You mentioned renting to college students? Were these people you already knew? I have found it very helpful to have their parents co-sign on the lease agreement too.

    Rent by the room house hacking is not sexy if people do not "get it". After they see the full benefits (decreased living expenses, appreciation, debt pay down from your tenants, depreciation), then their mind will change :)

    What is the business plan transitioning from HH#1 to HH#2?

    Thanks man!! (Appreciate the title feedback too ;))

    Yes, co-signing is such a powerful tool. I do not see it used enough either. 

    Yes, college students that were strangers. Have had co-signers and non-cosigners as well. The beauty of renting by the room is the rental amount per person is very low. 

    No, it is not sexy by any means. Hard to see the long term rewards in the moment, but I had been too hooked to stop! 

    I've already transitioned from HH#1 and HH#2 and I'm now renting a place with my girlfriend. We're likely going to go into our next place together after getting married which may be a few years :)

  • Real Estate Agent · Rapid City SD, United States · Member since 2023 · 10 posts · 3 votes
    3y

    Thanks for sharing. I'm hoping to do something similar start of 2024 and it's super helpful hearing real-world examples like this!

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

    Thanks for sharing. I'm hoping to do something similar start of 2024 and it's super helpful hearing real-world examples like this!

    Glad to hear it. I wish you the best of luck!!
  • New to Real Estate · Memphis, TN · Member since 2022 · 95 posts · 71 votes
    3y

    @Jake Andronico

    This really hits home for me right now! I am 21 and just bought my first house hack a few months back. I purchased the house for $248,000 w/ 5% down. And it still cash flows $200 while I am living there!

    My 4 tenants are teammates with me on the baseball team at college. 

    Setting expectations and responsibilities is something I am working on right now.   

    Would you have any recommendations about how you set those responsibilities and such. 

    Thank you so much!!

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    3y

    @Michael Dallas Wow, congrats man!! 

    That's so awesome you can cash flow while living there, especially with such little down. 

    Shows the power of renting to more tenants. 

    I would have a super tight lease agreement and try to think as much through as you can. As you continue to live there, new things will come up. 

    When things get weird (and something will likely happen eventually), the lease agreement is always best to refer back to. It has been huge for me. 

    Congratulations again and hope to continue to see you in the forums to hear about your progress!!

  • Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    3y

    interest rates appreciation and rent growth play a huge roll in brrrr and housing hacking 

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    3y

    #3 is a rule every new real estate investor (and many seasoned, including at times myself) need to remember. It absolutely always takes longer and costs more than you think it will. 

  • New to Real Estate · Memphis, TN · Member since 2022 · 95 posts · 71 votes
    3y
    Quote from @Jake Andronico:

    @Michael Dallas Wow, congrats man!! 

    That's so awesome you can cash flow while living there, especially with such little down. 

    Shows the power of renting to more tenants. 

    I would have a super tight lease agreement and try to think as much through as you can. As you continue to live there, new things will come up. 

    When things get weird (and something will likely happen eventually), the lease agreement is always best to refer back to. It has been huge for me. 

    Congratulations again and hope to continue to see you in the forums to hear about your progress!!


     Thank you so much! I have definitely come across some awkward occurrences that I was not prepared for in my lease agreement. I will definitely take a lot more time to write out one next year!

  • Real Estate Agent · Raleigh, NC · Member since 2019 · 308 posts · 288 votes
    3y

    I think we all appreciate you touching on the "unsexy" parts of house hacking. And pointing out that you don't have to FULL SEND IT Criag Curelop style if that's not your goal. A year or two of my life in a home is long enough to warrant slightly lower gross income for the sake of my sanity. Great post and super inspirational. Thanks Jake!

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y
    Quote from @Benjamin Carver:

    I think we all appreciate you touching on the "unsexy" parts of house hacking. And pointing out that you don't have to FULL SEND IT Criag Curelop style if that's not your goal. A year or two of my life in a home is long enough to warrant slightly lower gross income for the sake of my sanity. Great post and super inspirational. Thanks Jake!


    Thank you so much man! A year or two feels very long in the moment, but it can make a huge difference. 

  • Lender · Dayton, OH · Member since 2018 · 118 posts · 19 votes
    2y

    Great tips. Thanks for sharing

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    2y

    This really ended up being one of the best posts of last year, and in @Jake Andronico we really got a good example of someone giving back and telling it like it is.

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y
    Quote from @Carlos Scarpero:

    Great tips. Thanks for sharing


    Thank you Carlos! 

  • Jake AndronicoBusiness Member
    OP
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y
    Quote from @Jim K.:

    This really ended up being one of the best posts of last year, and in @Jake Andronico we really got a good example of someone giving back and telling it like it is.

    Wow, very kind words Jim. Much appreciated!!
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