Updated 18 days ago on . Most recent reply
Fastest Route to house hacking
Pros! I am starting my investing journey. My top priority is to do wholesaling. Though, for my personal, I looking to house hack in the near future, probably towards the end of the year around September or so. What do you all believe to be the best way to take care of this ? My plan was to utilize the FHA loan. Drop some knowledge on me! Thanks in advance!
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#2 House Hacking Contributor
- Real Estate Agent
- Los Angeles, CA
Regarding FHA versus conventional, I disagree with Jeff that it looks bad with a Seller. That just means that your agent doesn't know how to present it. It's all about presentation. If someone has concerns over an FHA loan, then your Realtor can just explain that it is actually EASIER to get the loan approved because they have looser guidelines. It many ways it is actually safer to go with FHA than any other loan.
With that said, there are some major advantages of putting 5% down including removing PMI later on, etc. But it all comes down to your cash reserves.
The name of the game with house hacking is the more bedrooms and/or units, the better. Depending on how much cash and time you have, look at properties with dysfunctional floor plans to maximize more bedrooms and get a better price from the get-go.
Also don't be afraid to get uncomfortable. On my second house hack, my wife and I lived in the studio ADU (360 sq. ft.) and rented out the main house for two years before moving. It helped us get out of debt, refinance twice, and put us on a much better path going forward.