19 Years Old – Looking to House Hack in Cleveland, Need Advice

[Kamar Carter]

Im 19 (turning 20 in less than a month) and looking to get started with house hacking here in Cleveland. I’m currently living at home but I’m ready to move out and want to do it strategically instead of just renting an apartment.

I recently changed jobs. I was at my previous employer for about two years, and I just started a new full-time warehouse position. I’ve heard lenders like to see at least two years of employment history, so I’m wondering how that works when you switch employers. Will changing jobs affect my chances of getting approved, even though I have a consistent two-year work history?

I’m planning to move out with my girlfriend, and we’ll both be contributing financially. We’re looking at duplexes or small multifamily properties in the $250k and under range. The plan is to live in one unit and rent out the other to help cover the mortgage.

Realistically, how much should we have saved before trying to move forward? I understand there’s the down payment and closing costs, but I want to make sure we’re prepared beyond just the minimum. What would you consider a responsible amount to have set aside for reserves, repairs, and unexpected expenses?

For those who have house hacked in Cleveland or similar markets, what were the biggest obstacles you ran into early on? I’m trying to think ahead and avoid common mistakes.

I’m serious about building a strong foundation and doing this the right way. I appreciate any advice or insight.

[Ryan Thomson]

On the employment change: switching jobs in the same type of work is fine with most lenders. You want 30 days of pay stubs at the new job before closing. Two years of consistent employment history matters more than tenure at one specific company.

For reserves on a $250K duplex: budget roughly $7,500-10K to close with FHA (3.5% down plus costs), plus 3 months of mortgage payments in reserve. You want $15,000-18,000 saved before you make an offer. Less than that and one vacancy or one repair puts you in a tough spot.

One thing most new investors miss in Cleveland: there is solid FHA and VA assumable inventory from 2020-2022 at 2.75-3.5% rates. If you buy a duplex by assuming an existing low-rate loan instead of getting a new one at 6.25%, you save $400-500/month on a $200K balance. On a house hack where the whole goal is reducing your housing cost, that changes the math significantly.

I have closed 7+ assumable mortgage deals. They take 45-90 days and the equity gap is the main challenge, but in the $250K price range it is manageable.

What neighborhoods in Cleveland are you targeting?