First-Time House Hack – Looking for Advice on 3–4 Unit Purchase in Houston

Houston, Texas
House Hacking
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First-Time House Hack – Looking for Advice on 3–4 Unit Purchase in Houston

Nomal Samaraweera
Member since 2025 · 2 posts · 4 votes

Hello folks,

My goal is to purchase my first rental property, ideally a 3–4 unit multifamily. Given today's rates and prices, I realize an FHA loan with 3.5% down may not be realistic, so I've been exploring the Home Possible loan option instead.

I’ll be buying in the Houston area and I’m also considering Airbnbing the units I don’t occupy.

Does anyone here have experience with this, or recommendations on what I should be looking into before moving forward? I’ve been doing my own due diligence, but any advice or resources for further education would be greatly appreciated!

Thanks in advance.

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Holly BrownBusiness Member
Real Estate Agent · Houston, TX · Member since 2019 · 190 posts · 137 votes
1y

Hi Nomal, 

When I first got started, I also used the house hacking strategy, so I completely understand where you’re coming from. I’d be happy to chat more and help however I can. I also host monthly real estate meetups here in Houston, which could be a great resource for you. They’re a chance to connect with experienced investors, hear their insights, and learn ways to avoid common mistakes. Also may be a good way to find an equity partner if down payment is the limiting factor.

281-250-0650
Invest In Houston Real Estate Team
WebsiteView Page
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  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    1y
    Quote from @Nomal Samaraweera:

    Hello folks,

    My goal is to purchase my first rental property, ideally a 3–4 unit multifamily. Given today's rates and prices, I realize an FHA loan with 3.5% down may not be realistic, so I've been exploring the Home Possible loan option instead.

    I’ll be buying in the Houston area and I’m also considering Airbnbing the units I don’t occupy.

    Does anyone here have experience with this, or recommendations on what I should be looking into before moving forward? I’ve been doing my own due diligence, but any advice or resources for further education would be greatly appreciated!

    Thanks in advance.

    Hello Nomal!

    I like the strategy here. In addition to researching Home Possible, I'd recommend you begin speaking with anyone in your personal circle regarding Real Estate investing. 

    You will be surprised how many friends, family members, co-workers, neighbors, etc. are either already investing in RE or looking to invest in the near future. If down payment is an issue for you, private money or partnership may be other options to entertain.

    Lastly, to get a good grasp on the Houston multi-family market, I'd recommend connecting with local agents and lenders.

     
    All the best!

    Abel

    REbuild Team - eXp Realty5234 Reviews
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    0Reply
    • Nomal Samaraweera
      OP
      Member since 2025 · 2 posts · 4 votes
      1y
      Quote from @Abel Curiel:
      Quote from @Nomal Samaraweera:

      Hello folks,

      My goal is to purchase my first rental property, ideally a 3–4 unit multifamily. Given today's rates and prices, I realize an FHA loan with 3.5% down may not be realistic, so I've been exploring the Home Possible loan option instead.

      I’ll be buying in the Houston area and I’m also considering Airbnbing the units I don’t occupy.

      Does anyone here have experience with this, or recommendations on what I should be looking into before moving forward? I’ve been doing my own due diligence, but any advice or resources for further education would be greatly appreciated!

      Thanks in advance.

      Hello Nomal!

      I like the strategy here. In addition to researching Home Possible, I'd recommend you begin speaking with anyone in your personal circle regarding Real Estate investing. 

      You will be surprised how many friends, family members, co-workers, neighbors, etc. are either already investing in RE or looking to invest in the near future. If down payment is an issue for you, private money or partnership may be other options to entertain.

      Lastly, to get a good grasp on the Houston multi-family market, I'd recommend connecting with local agents and lenders.

       
      All the best!

      Abel


      Appreciate the response, Abel! I've spoken around and got some advice, but I also wanted to expand my network, hence why I wanted to find a community here.

      Yes sir, currently reaching out to agents and lenders. Thanks for the call out.

      1Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    Regarding the short term rental approach, you need to check with local laws on what you can and can't do. In some cities, you can't do STR for multifamily or you can but only one unit.

    There also could be taxes, licensees, etc. with STR. I would just do all of your due diligence before going down that route. And then factor in cost of furniture and utilities. When I've ran the numbers in the past (not Houston specific), it really broke down to almost the same as what I would rent for long term, but then save money on vacancy and time managing it.

    1Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1y

    Any of these approaches are reasonable but costly so if you are cash strapped I'd start with single family or townhouse hack first. 

    1Reply
  • Austin ClarenceBusiness Member
    Lender · Phoenix, AZ · Member since 2023 · 135 posts · 31 votes
    1y

    Hi Normal, after you speak with a lender and get an idea of credit and income you will have an even better idea of available options. Programs like HomePossible like you mentioned are strict on the amount of income you earn.

    Its all based on your income (on the loan) vs the average for the county. So a lender can tell you with the income threshold is. 

    I am looking into Harris County, TX and the income cap appears to be $81,600 

    [email protected]650-906-2376
    Austin Clarence with NEXA Mortgage551 Reviews
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  • Holly BrownBusiness Member
    Real Estate Agent · Houston, TX · Member since 2019 · 190 posts · 137 votes
    1y

    Hi Nomal, 

    When I first got started, I also used the house hacking strategy, so I completely understand where you’re coming from. I’d be happy to chat more and help however I can. I also host monthly real estate meetups here in Houston, which could be a great resource for you. They’re a chance to connect with experienced investors, hear their insights, and learn ways to avoid common mistakes. Also may be a good way to find an equity partner if down payment is the limiting factor.

    281-250-0650
    Invest In Houston Real Estate Team
    WebsiteView Page
    2Reply
  • Luke Feliciano
    Lender · Cincinnati, OH · Member since 2025 · 58 posts · 23 votes
    1y
    Quote from @Nomal Samaraweera:

    Hello folks,

    My goal is to purchase my first rental property, ideally a 3–4 unit multifamily. Given today's rates and prices, I realize an FHA loan with 3.5% down may not be realistic, so I've been exploring the Home Possible loan option instead.

    I’ll be buying in the Houston area and I’m also considering Airbnbing the units I don’t occupy.

    Does anyone here have experience with this, or recommendations on what I should be looking into before moving forward? I’ve been doing my own due diligence, but any advice or resources for further education would be greatly appreciated!

    Thanks in advance.


     Hello Nomal, 

    Lender here. I think you are definitely on the right track as far as HomeReady/HomePossible loans go, especially with you being a first-time homebuyer. As others have mentioned, getting in touch with local realtors and lenders is a great first step. 

    While I am not licensed in Texas myself, my group has several LOs licensed in the state and I'd be happy to connect you with them to get the pre-approval process started.

    0Reply
  • Daniel TanasaBusiness Member
    Realtor · Houston, TX · Member since 2019 · 351 posts · 174 votes
    1y

    Hello Normal, 

    Welcome to Bigger Pockets! I have a friend/client of mine that just did this exact strategy. She bought a triplex last year, lived in it for 1 year while renting the other units on AirBnb, and now we are under contract for her to buy another 4plex to do the same strategy. This strategy takes a bit of work, but is definitely doable. 

    First step will be to find out what you're pre approved for and then start your search from there. If you need any help with the search or finding a lender, feel free to reach out to me and I will be happy to point you in the right direction. 

    Good luck!

    0Reply
  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    1y

    Nomal,

    I can't speak to Airbnb (although I have heard revenue is down for many folks as competition is stiff), as far as renting the units to long-term tenants, this is a great strategy!

    Do keep an eye on rents as we've seen our small multifamily properties take longer to lease than in the past due to the increased supply and amenities of larger multifamily properties.

    Best of luck!
     

    [email protected]832-770-7090
    0Reply
  • Account Closed
    Member since 2023 · 34 posts · 6 votes
    1y

    Make sure the roaches down there don’t scare the tenants away. many old homes have cracks and gaps everywhere and this was an issue for my Dallas property. 

    1Reply
    • Wale LawalBusiness Member
      Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
      1y
      Quote from @Account Closed:

      Make sure the roaches down there don’t scare the tenants away. many old homes have cracks and gaps everywhere and this was an issue for my Dallas property.  

      @Account Closed

      This is funny. Not that bad in the Houston Area, but I also recommend that @Nomal Samaraweera should buy a newer property to save on some headache and frustration.

      [email protected]832-776-9582Podcast Guest on Show #469
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      1Reply
  • Kyle HendricksPro Member
    Lender · Member since 2021 · 170 posts · 74 votes
    1y

    Love the strategy here. I am a lender licensed in TX and have househacked myself, and help a lot of people do the same.

    I would suggest to run a pre-approval both FHA and Conventional and see what makes the most sense because it really varies person to person. (price, credit, DP, etc.)

    I like the Mid term rental strategy with househacking. It is less work than STR, more steady, and good cash flow. I really like also doing a mix of long term and mid term for stability and less risk while also getting good cash flow.

    No wrong answers though, whatever works for you and your goals. Let me know if you ahve any questions! Happy to help however I can.

    [email protected]253-355-0247
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