Do's, do-nots, and any tips for a first time house hacker.

[Liam Marshall]

Eventually I would like to start my REI journey through house hacking and I'm all ears to any pieces of advice you have. Whether it be brief thoughts, a thorough explanation , mistakes, tips, advice from an analysis perspective or property management perspective, or any general suggestions, all input is greatly appreciated.

Best,

Liam

[Andrew Postell]

@Liam Marshall love house hacking.  It's how I got started and certainly wouldn't have as many properties today if I didn't start out house hacking.  Here's some basic suggestions I would recommend:

1. Get prequalified before you go shopping - make sure you know what price point to hit before you start looking for a home.  Getting prequalified is free and it might even answer some other questions about the process when you do it.  Do this first.

2. Choose based on YOUR needs first - this will be your home.  You will live in it.  You will need to commute from it.  You will need to feel safe living there.  Etc, etc, etc.  Chose for you and everything else will work itself out.

3. Cashflow - you wont' cashflow.  You just won't.  You will occupy part of the property.  And you are borrowing WAY more than we do when we execute on a true rental property.  Having no cashflow is OK.  House hacking REDUCES your costs of homeownership.  That's the whole point of it.  I know, I know...I saw those same videos too.  You won't cashflow - and that's ok.  

4. Occupancy - you only commit to living in the property for 12 months.  There are tax advantages with certain strategies if you occupy for 24 months.  The point here is don't look for the "perfect" property.  Just execute on one that you feel comfortable with for 12-24 months.  You're going to own LOTS and LOTS of houses...it's ok if the paint doesn't exactly match your sofa.  You can get picky later in life if you want to.  Keep it simple here.

Hope all of that makes sense.  Thanks!