Newbie looking to become house hacker as first time home buyer.
Member since 2020 · 15 posts · 20 votes
Newbie looking to become house hacker as first time home buyer.
Most Popular Reply
Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votesHey @Jofre Olivero, I’ve been where you are, and honestly, the best move is to find a place with separate meters so you aren't stuck paying for everyone’s heat in the winter. From my experience, it’s way easier to get approved for a duplex when you’re starting out because the banks are a lot less picky about the math than they are with 3 or 4-unit buildings. I'd recommend looking for a local "silent second" mortgage or a down payment grant; it’s basically free money for staying put, which is perfect since you’re living there anyway.
Kerlous Tadres | Reafco Real Estate541 Reviews
24 Replies
Hi Jofre! House hacking is a solid way to start, especially with low capital, and FHA + down payment assistance is exactly how many first deals get done. If I were starting today, I'd worry less about the exact city and more about rental demand, stable older housing stock, landlord friendly rules, and keeping rehab very light. Being out of state, your team matters more than the market, so focus on finding reliable people on the ground and underwriting deals conservatively with vacancy and repairs baked in. Happy to keep the conversation going!
- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Min Zhang:
Hi Jofre! House hacking is a solid way to start, especially with low capital, and FHA + down payment assistance is exactly how many first deals get done. If I were starting today, I'd worry less about the exact city and more about rental demand, stable older housing stock, landlord friendly rules, and keeping rehab very light. Being out of state, your team matters more than the market, so focus on finding reliable people on the ground and underwriting deals conservatively with vacancy and repairs baked in. Happy to keep the conversation going!
Hey Min, thank you so much for your recommendation and for staying available moving forward. I'd definitely need to ask questions while I navigate this plan.
- 9moKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey @Jofre Olivero, I’ve been where you are, and honestly, the best move is to find a place with separate meters so you aren't stuck paying for everyone’s heat in the winter. From my experience, it’s way easier to get approved for a duplex when you’re starting out because the banks are a lot less picky about the math than they are with 3 or 4-unit buildings. I'd recommend looking for a local "silent second" mortgage or a down payment grant; it’s basically free money for staying put, which is perfect since you’re living there anyway.
Kerlous Tadres | Reafco Real Estate541 Reviews- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Kerlous Tadres:
Hey @Jofre Olivero, I’ve been where you are, and honestly, the best move is to find a place with separate meters so you aren't stuck paying for everyone’s heat in the winter. From my experience, it’s way easier to get approved for a duplex when you’re starting out because the banks are a lot less picky about the math than they are with 3 or 4-unit buildings. I'd recommend looking for a local "silent second" mortgage or a down payment grant; it’s basically free money for staying put, which is perfect since you’re living there anyway.
Hi Kerlous, thats a great advice, thank you so much. I wouldn't want to have those expenses for sure. I will consider the duplex part as well, the reason why I'm considering 3-4 is to avoid paying any mortgage myself, on a duplex where I'm planning to live, I run the risk of putting on my own money since I will have just one rental. Please correct me if I'm wrong. thanks again!
- 9moKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votesYou’re exactly right that a 3 or 4-unit property has the best chance of covering your entire mortgage, but there’s a catch: for FHA loans, those larger buildings have to pass a strict "self-sufficiency test" where 75% of the total rent must cover the full mortgage payment. From my experience, it’s much easier to find a duplex that works for your budget, even if it means you still pay a couple of hundred bucks a month toward the bill, than it is to find a 4-plex that actually passes the bank’s math.
Quote from @Jofre Olivero:
Quote from @Kerlous Tadres:
Hey @Jofre Olivero, I’ve been where you are, and honestly, the best move is to find a place with separate meters so you aren't stuck paying for everyone’s heat in the winter. From my experience, it’s way easier to get approved for a duplex when you’re starting out because the banks are a lot less picky about the math than they are with 3 or 4-unit buildings. I'd recommend looking for a local "silent second" mortgage or a down payment grant; it’s basically free money for staying put, which is perfect since you’re living there anyway.
Hi Kerlous, thats a great advice, thank you so much. I wouldn't want to have those expenses for sure. I will consider the duplex part as well, the reason why I'm considering 3-4 is to avoid paying any mortgage myself, on a duplex where I'm planning to live, I run the risk of putting on my own money since I will have just one rental. Please correct me if I'm wrong. thanks again!
Kerlous Tadres | Reafco Real Estate541 Reviews - Member since 2020 · 15 posts · 20 votes9mo
Quote from @Kerlous Tadres:
You’re exactly right that a 3 or 4-unit property has the best chance of covering your entire mortgage, but there’s a catch: for FHA loans, those larger buildings have to pass a strict "self-sufficiency test" where 75% of the total rent must cover the full mortgage payment. From my experience, it’s much easier to find a duplex that works for your budget, even if it means you still pay a couple of hundred bucks a month toward the bill, than it is to find a 4-plex that actually passes the bank’s math.Quote from @Jofre Olivero:
Quote from @Kerlous Tadres:
Hey @Jofre Olivero, I’ve been where you are, and honestly, the best move is to find a place with separate meters so you aren't stuck paying for everyone’s heat in the winter. From my experience, it’s way easier to get approved for a duplex when you’re starting out because the banks are a lot less picky about the math than they are with 3 or 4-unit buildings. I'd recommend looking for a local "silent second" mortgage or a down payment grant; it’s basically free money for staying put, which is perfect since you’re living there anyway.
Hi Kerlous, thats a great advice, thank you so much. I wouldn't want to have those expenses for sure. I will consider the duplex part as well, the reason why I'm considering 3-4 is to avoid paying any mortgage myself, on a duplex where I'm planning to live, I run the risk of putting on my own money since I will have just one rental. Please correct me if I'm wrong. thanks again!
Makes sense my friend. Thanks for the added value and wish you all the best
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes9mo
I would say you are on the right track. I will say that buying a 3-4 unit can be expensive in terms of repairs, tenant turnover etc. just by virtue of size (4 kitchens, 4 bathrooms, etc.). I bring this up because if money is tight, you may want to start smaller like a duplex or a single and rent by the room. The last thing you want is to end up in a worse financial position because of surprises.
- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Rick Albert:
I would say you are on the right track. I will say that buying a 3-4 unit can be expensive in terms of repairs, tenant turnover etc. just by virtue of size (4 kitchens, 4 bathrooms, etc.). I bring this up because if money is tight, you may want to start smaller like a duplex or a single and rent by the room. The last thing you want is to end up in a worse financial position because of surprises.
Life saving advise! Thank you so much Rick!
- 9moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
Welcome to BP, Jofre! It sounds like you're thinking about this the right way, and house hacking can be an amazing way to start even with little cash upfront if you leverage FHA or local down payment assistance programs. Since you're open to out-of-state options, I'd definitely suggest taking a look at Columbus, Ohio. The market has been incredible for first-time investors, and you can still find 3–4 unit properties or single families in the $120K–180K range that hit the 1% rule and positive cash flow from day one, which makes house hacking or buying multiple properties doable. The city's population and job growth are strong, plus major companies like Intel, Amazon, Google, Facebook, Honda, Microsoft, and LG are investing heavily here, so the long-term appreciation potential is solid. Even as a beginner with limited income, programs like FHA or local assistance paired with small multifamily units can get you started without needing huge capital, and having a property manager can make long-distance management smooth if needed. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Jimmy Lieu:
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
Welcome to BP, Jofre! It sounds like you're thinking about this the right way, and house hacking can be an amazing way to start even with little cash upfront if you leverage FHA or local down payment assistance programs. Since you're open to out-of-state options, I'd definitely suggest taking a look at Columbus, Ohio. The market has been incredible for first-time investors, and you can still find 3–4 unit properties or single families in the $120K–180K range that hit the 1% rule and positive cash flow from day one, which makes house hacking or buying multiple properties doable. The city's population and job growth are strong, plus major companies like Intel, Amazon, Google, Facebook, Honda, Microsoft, and LG are investing heavily here, so the long-term appreciation potential is solid. Even as a beginner with limited income, programs like FHA or local assistance paired with small multifamily units can get you started without needing huge capital, and having a property manager can make long-distance management smooth if needed. Happy to connect and answer any questions you have!
Awesome Jimmy!, I wasn't considering that far but your detailed recommendation is making me think about OH. I appreciate you for taking the time to add some value.
- 9moMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
I suggest looking at the Midwest markets if you're looking for easy entry. Out-of-state investing can be tricky if you don't choose the market wisely. Also, work on your funds and try saving more if you want to get into Real Estate
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Marc Rice:
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
I suggest looking at the Midwest markets if you're looking for easy entry. Out-of-state investing can be tricky if you don't choose the market wisely. Also, work on your funds and try saving more if you want to get into Real Estate
Thank you so much Marc, will be looking into those states as well.
- 9moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
I am from Meriden, CT!
House hacking is the way to go. That is what I did in 2017. I have probably house hacked about 6 times now. Do it as many times as you can before you get a family that does not want you to do it anymore.
- Member since 2020 · 15 posts · 20 votes9moThank you for motivating me Remington! Will definitely go for it
Quote from @Remington Lyman:
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
I am from Meriden, CT!
House hacking is the way to go. That is what I did in 2017. I have probably house hacked about 6 times now. Do it as many times as you can before you get a family that does not want you to do it anymore.
- 9moAbel CurielBusiness MemberReal Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
Hello Jofre!
If you're looking to house-hack near New York City, CT, NJ, and PA are strong options.
NYs suburbs (Long Island, Westchester, Rockland, etc.) are priced lower than NYC BUT househack properties have a ton of competition. This competition means you'd find more success with a higher down payment amount/percentage which makes it challenging if you have limited capital.
The surrounding states have more affordable options and if you're open to moving further from NYC i.e. Midwest, South, you'll have even better inventory to choose from.
All the best!
Abel
REbuild Team - eXp Realty5234 Reviews- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Abel Curiel:
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
Hello Jofre!
If you're looking to house-hack near New York City, CT, NJ, and PA are strong options.
NYs suburbs (Long Island, Westchester, Rockland, etc.) are priced lower than NYC BUT househack properties have a ton of competition. This competition means you'd find more success with a higher down payment amount/percentage which makes it challenging if you have limited capital.
The surrounding states have more affordable options and if you're open to moving further from NYC i.e. Midwest, South, you'll have even better inventory to choose from.
All the best!
Abel
Great info Abel! Thank you for dropping some advice. I like PA and NJ as well. Will be analyzing some options there too
- 9moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Jofre Olivero:
Hi community,
I'm looking into getting my first property as first time home buyer by house hacking. Im in NYC but for some reason I'm not interested in doing this here. I'm looking for 3-4 multifamily homes in Waterbury, CT or other towns (I'm open to recommendations based on your expertise) or other near by states. As for now, I've been analyzing properties in that area. Which nearby markets you recommend? how would you do it now days if you were starting like me? What factors should I consider?Also, I have very little money to non, not great income and considering going FHA, etc with applying to local down payment assistance programs. In general, I'd love to hear your recommendations, tips, hacks, etc. I truly appreciate your input.
You should look somewhere close by and still house-hack with 5% down conventional (some lenders offer 0% down) in affordable housing areas.
You can incorporate in seller credits upto 2% on 6% FHA and get rent prorations and security deposits if you buy multi-family (2-4 unit).
Goodluck, maybe look at buffalo and try working from home or something. OR find somewhere close by (teritiary market).
ReafCo | Ahmed Group 539 Reviews - Member since 2025 · 91 posts · 55 votes9mo
@Jofre Olivero I would also be mindful that some house hack properties will come with existing tenants. It goes without saying you'll want to carefully vet your new neighbors before making such a significant purchase!
- Member since 2020 · 15 posts · 20 votes9moGreat detail to consider. Thank you so much Lydia!
Quote from @Lydia Winn:
@Jofre Olivero I would also be mindful that some house hack properties will come with existing tenants. It goes without saying you'll want to carefully vet your new neighbors before making such a significant purchase!
- Lender · Charlotte, NC · Member since 2023 · 11 posts · 1 vote9mo
look into geting preapproved for a 203k loan with a rehab and mortgage payments wrap in. great way to build equity and experience. great way to get a deal that needs work then increase its value. should only need 3.5% down for the purchase I believe
- Member since 2020 · 15 posts · 20 votes9mo
Quote from @David Buckley:
look into geting preapproved for a 203k loan with a rehab and mortgage payments wrap in. great way to build equity and experience. great way to get a deal that needs work then increase its value. should only need 3.5% down for the purchase I believe
Nice idea, thank you David!
- Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes9mo
Hey Jofre,
1. Talk with lenders early, if you haven’t already. This will help you understand what’s required for financing and may reveal additional options you qualify for.
2. Have reserves. Running rental properties comes with unexpected expenses, especially if you’re looking at 3–4 units. Being prepared will save a lot of stress down the road.
3. Don’t rush because prices seem low — poor rent potential or high cap-ex can quickly eat into your returns.
4. Practice your underwriting skills. Spend time becoming familiar with the numbers in your chosen market. Evaluate deals based on your own assumptions, projections, and criteria. At the end of the day, it’s the inputs you put in that determine whether a deal works or fails. Becoming comfortable with this process will help you spot realistic opportunities and avoid deals that look good on paper but won’t deliver in practice.
I work with a lot of first-time investors who house hack their first property in NY. If you want to hear more about that, feel free to send me a message. I’d be happy to connect and chat!
- Member since 2020 · 15 posts · 20 votes9mo
Quote from @Mohammed Rahman:
Hey Jofre,
1. Talk with lenders early, if you haven’t already. This will help you understand what’s required for financing and may reveal additional options you qualify for.
2. Have reserves. Running rental properties comes with unexpected expenses, especially if you’re looking at 3–4 units. Being prepared will save a lot of stress down the road.
3. Don’t rush because prices seem low — poor rent potential or high cap-ex can quickly eat into your returns.
4. Practice your underwriting skills. Spend time becoming familiar with the numbers in your chosen market. Evaluate deals based on your own assumptions, projections, and criteria. At the end of the day, it’s the inputs you put in that determine whether a deal works or fails. Becoming comfortable with this process will help you spot realistic opportunities and avoid deals that look good on paper but won’t deliver in practice.
I work with a lot of first-time investors who house hack their first property in NY. If you want to hear more about that, feel free to send me a message. I’d be happy to connect and chat!
Great value Mohammed! thank you for such great info. Happy to remain in contact.
- 9moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 954 votes
Hey Jofre, house hacking in NYC is tough with high prices, but Midwest markets are much more beginner-friendly. You can find 3-4 unit properties at lower entry costs that cash flow well, letting you learn the ropes without breaking the bank. You can use FHA or local down payment assistance, focus on solid neighborhoods, and scale faster than in high-priced areas. If you want, I can share how investors are getting into undervalued, cash-flowing properties in the Midwest and managing them remotely.
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