House Hacking first time out of parents house

Columbus, Ohio
House Hacking
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House Hacking first time out of parents house

Gabriel Dent
Columbus, OH · Member since 2021 · 3 posts · 2 votes

Hey guys Im new to REI and really life as an adult haha. I'm moving out of my parents house for the first time soon. I could get an apartment but I think house hacking would be more worth while. any tips and insight as to get started quickly or should I rent an apartment for a year so I have more time to plan? My credit is like 730

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Gabriel Dent:

Hey guys Im new to REI and really life as an adult haha. I'm moving out of my parents house for the first time soon. I could get an apartment but I think house hacking would be more worth while. any tips and insight as to get started quickly or should I rent an apartment for a year so I have more time to plan? My credit is like 730


1. Ensure your finances are under control, completely. Invest from a strong foundation.

2. Educate yourself on the basics of house hacking. Read Set for Life by Scott Trench and House Hacking Strategy from Craig Curelop. I also recommend reading blogs and forums or watching videos on how to develop a good roommate contract, house rules, etc. The more you prepare for the inevitable problems, the easier it will go.

3. Start talking to a lender today. Find out how much you can qualify for and if it's enough. If it's not, focus on building your income, increasing savings, and getting into a position to purchase.

4. When you have control of your budget, money saved, and enough knowledge to be dangerous, take action! You'll learn the rest through experience.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y
    Quote from @Gabriel Dent:

    Hey guys Im new to REI and really life as an adult haha. I'm moving out of my parents house for the first time soon. I could get an apartment but I think house hacking would be more worth while. any tips and insight as to get started quickly or should I rent an apartment for a year so I have more time to plan? My credit is like 730


    1. Ensure your finances are under control, completely. Invest from a strong foundation.

    2. Educate yourself on the basics of house hacking. Read Set for Life by Scott Trench and House Hacking Strategy from Craig Curelop. I also recommend reading blogs and forums or watching videos on how to develop a good roommate contract, house rules, etc. The more you prepare for the inevitable problems, the easier it will go.

    3. Start talking to a lender today. Find out how much you can qualify for and if it's enough. If it's not, focus on building your income, increasing savings, and getting into a position to purchase.

    4. When you have control of your budget, money saved, and enough knowledge to be dangerous, take action! You'll learn the rest through experience.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    If you have the money to buy a property and plan on being in the area for a while, then buy a place.  Talk to a bank so you know what you can afford.  Talk to your parents, so you understand the full cost of owning a home.  When looking for a place, look at the sizes of the bedrooms, the lay out and number of bathrooms.  Think of yourself living in the rooms, not for style, but is there enough space (ie don't buy a place with lots of tiny rooms).

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  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 666 posts · 227 votes
    1y

    Hey Gabriel!  I had to figure that out myself as well a couple of years ago haha as already mentioned, first things first, make sure you feel financially stable and secure.  Taking on a house hack deal is a great entry point but still (what feels like) a big first step.  

    What I did when I graduated from college is stabilized my income/finances for about a year while I saved up and started doing market research.  At that point, I felt comfortable moving forward on house hacking.  I did not rent, though, mainly so that I could build up more savings for down payment and any rehabs/repairs.  It's worked out great for me so far, I just moved out and rented the other unit to get more cashflow.  Whether from the investor or lender side, happy to go into more details if that would be helpful for you. 

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Gabriel Dent

    House hacking is a method to build wealth through mortgage payments, using FHA or low-down-payment loans. It offers free living, real estate management experience, and early equity building. Renting an apartment for a year allows savings and familiarity with real estate concepts, but still requires rent payments. The choice depends on readiness, experience, and long-term goals.

    Good luck!

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  • Cody Anderson
    Member since 2024 · 30 posts · 5 votes
    1y

    It's definitely an option and one that can jump start your path to financial independence. 

    Curious if you're considering house hacking with other people (family or friends) or if you're thinking about going it solo? Pooling resources with others is one way to increase your buying power (and potential returns) and is something I am seeing more and more of in my day to day given the mutual tax benefits that can be shared and the high price to entry for housing rn. 

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  • Scott AllenBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
    1y

    @Gabriel Dent 

    Depending on your work and savings, it could be worth doing an application with a lender to see what you could get preapproved up to so you know what range you can offer within and then compare those duplexes, triplexes, and fourplexes to where you could rent for the time being instead. 

    If you have not moved out just yet, it could be smart to just start with signing a one year lease at an apartment or with a private landlord so you have a better understanding of how a lease looks and works. Nothing wrong with living somewhere like that temporarily while you look into places/neighborhoods that you would want to buy/live in as well. 

    It helps to have savings when you're looking at a little bit older of properties that might still need bits of updating.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1y

    @Gabriel Dent With a 730 credit score, you're in a good spot to house hack. Consider a duplex or triplex, live in one unit, and rent out the others to help cover your mortgage. Get pre-approved for a loan and budget for potential repairs. If you're ready financially, house hacking now can build equity faster, but renting for a year could give you more planning time if needed and there could be tax savings.

    This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

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