Trying to house hack as a young buck
Hey everyone, I’ve been lurking through comments the past few months and here goes my first post. I’m looking to house hack a duplex really anywhere south of point of the mountain here in Utah (or possibly north if I luck out). I got pre approved for up to 400k and I’m wondering if in the crazy market I really even stand a chance to find something less than that? I know the 1% rule is out of the question, but I’m okay with a few years without cash flow since the equity growth here has been crazy. I guess my question is would I be able to find something reasonable with my current situation?
I appreciate the help in advance!
Most Popular Reply
@Tanner Webb Is your qualification based on single family purchase? I think a duplex in that price range would be difficult but not impossible necessarily. However, keep in mind that when you purchase a multi unit it increases your purchasing power. I’m general, you get 75% of the rents from the second unit towards your income/ qualifying. So if one side rents $1,000 you get $750 towards income. As a quick reference, I would say each $50 increases buying power by $10,000. So in this case $150,000
Which also means a $250 car payment decreases buying power about $50,000.