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House Hacking

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Caio Ferreira Torres
Pro Member
  • New to Real Estate
  • Danbury, CT
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11
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House Hacking Every Year Not Possible?

Caio Ferreira Torres
Pro Member
  • New to Real Estate
  • Danbury, CT
Posted Nov 22 2023, 13:41

Hello all, 

I've watched a few podcasts where it was stated that it would be smart to house hack every year to take advantage of the low down payment loan options. With the new Fannie Mae 5% down payment conventional option on multi-family properties, I figured it might be possible to follow through with this strategy. However, I own a duplex and the DTI ratio for the next one just doesn't work out. If I'm struggling to meet the DTI criteria on my second property, how could this strategy be used on a year to year basis?

Here's a summary of my situation as an example: 

The unit I currently live in would rent for $2200

My second unit is currently rented for $2700

I rent my garages out for $350

For the next duplex I would live in one unit & rent the other for $2200 

I currently get paid $80k a year or $6667 per month.

75% (2200+2700+2200) + 350 + 6667 = $12342 per month in income

My current mortgage is 2950, my next would be 3300, and my student loan is 250 = $6500 total debt.

6500/12342 = 52.7% DTI

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