House hacking newbie

[Jaylin Warner]

Well I finally did it I pulled the trigger and bought my first duplex.

Well I bought it for 205k but in a c- neighborhood , I know that it's not favorable to buying b or a areas but I can't afford that so I had to buy where I could.  I make a bout 45k take home ( work 2 jobs overnight)

As my mortgage sits it's half of my pay for a month but I have no other debt I'm single 25 year old with a dream I will achieve.

i don't have full scope of a plan but somewhat. I'll probably by a fourplex next but eventually I want to get into commercial. its a house hack but I plan on staying into it until I reach 20%  Ltv to loan I only put 5% down.  I calculate with extra principal payments I'm comfortable to make I can reach that in 3 years while saving for another down payment for fourplex. The good news is the house appraised 35k over purchase and I had some of closing paid for. I'll be able drop pmi with 1st year It's a studio/2-1 home.

any advice for some one new I already have tenat in place for year at 1385 been there about 4 years prior. should I go into another deal before paying this one off or just keep a good amount of equity in it before moving.  The reason I ask because eventually I thought about a cash out refinance or a 1031 this home before going in to commercial. I wanted to buy 2 quads and 5-10 unit. I was going to recast loan to get higher cashflow to help pay down future fourplex bieng I would probably put down 5%. How would you do it and is there something I'm missing?

reason for 5-10 you can have a 30 year fixed rate mortgage no ballon

[Aaron Zimmerman]

Congrats on your first purchase and taking action! 

I would look to stabilize this house hack deal and save up for the next one. You're going to need to stay in the property for one year anyway. 

if you find a deal you can't pass up, you may consider partnering with someone. At this early stage, you don't want to over leverage yourself. 

I wouldn't say you need to pay down the mortgage on your house hack. If the property is performing well, I'd look to keep it and then house hack again when you're able to save up enough for the next one.

i know this is probably easier said than done, especially with working two jobs. but I'd look to see if there's any ways to increase income. Could you switch jobs to a competitor and get a raise? 

Your grit, determination, and commitment to real estate will serve you well in buying more real estate. Congrats!