Thinking of jumping into house-hacking for our first property

Tampa, Florida
House Hacking
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Thinking of jumping into house-hacking for our first property

Garrett AdamsPro Member
Member since 2023 · 2 posts · 3 votes

Hello all!

My wife, our infant son, and I semi-recently moved to the Tampa Bay area after I landed a great job in the area. I’m really enjoying the position, and my wife is loving the opportunity to stay home with our son for now while she prepares to go back to school to finish her nursing degree soon.

We've always talked about starting a rental portfolio focused on small multifamily, and it's a dream I've been especially driven to make real. I may have found a tri-plex that could be a great first step. We'd be going owner-occupied with an FHA loan at 3.5% down and likely use a 203(k) Limited to finance a new roof.

Once the roof is done, we’d re-tenant the property with market‑rate leases and move into one of the existing units. From there, I plan to DIY convert the ground-level garage under one of the existing units into a fourth legal dwelling. I'd pay cash for materials and do the majority of the work myself—keeping costs low. Once finished, we'd move into the new unit and rent out the one we were originally living in to complete the full 4‑unit plan, all within the FHA's 12-month occupancy requirement.

Some questions I’d love help with:

  1. Any investors familiar with South St. Pete, particularly the Harbordale / Childs Park area? What are your thoughts on tenant class, market rents for 1 and 2bd units, or code enforcement?

  2. Has anyone here successfully added a 4th unit through a garage conversion? Any tips on dealing with zoning, floodplain regs, or permitting in Pinellas County?

  3. For those who’ve used FHA + 203(k) Limited: any lessons learned or lender recommendations? I’ve read horror stories about lenders freezing draws or rejecting post-close changes—looking to avoid those pitfalls.

  4. General advice for first-time house hackers doing DIY improvements on a partially vacant property?

I’ve been doing a ton of research and modeling, and I feel this project could set us up for a strong start. Appreciate any wisdom from the community!

Thanks so much,
Garrett

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Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
1y

I did the FHA 203(k) loan for a remodel, addition, and converting our garage into an ADU. A much bigger project than what you are suggesting since you aren't using the loan for the fourth unit.

The big challenge I had was how slow the lender was to cut checks to the contractor. They were so slow in fact that I had to threaten to report them to the CFPB in order to get them on track.

I would recommend either (1) set clear expectations with the contractor that although you are slow to pay, they are guaranteed to get paid because the lender requires the work to get done and/or paying a little more and having the HUD Consultant come out more often to get the checks going out faster (smaller amounts but more frequent).

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  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    1y

    35-year lender and 15+ year investor from the Tampa Bay area here, so I know the market and I've either built or flipped scores of homes in the area. I've financed thousands over 35 years, so I think I'm qualified to answer this one. The 203(k) loan is a bit more strict with respect to DIY that you might think. The three most important things a lender looks at when lending to an investor are not capacity, credit, and collateral (don't get me wrong...they are important). To lenders, the three most important things really are 1) experience, 2) experience, and 3) experience. I did my first single-family flip with a partner more than 15 years ago after financing deals for others for 20 years prior to that. Even with that background, I made a lot of mistakes in my first 5-7 deals. Good lenders know this. If you're a new investor looking to DIY it, the lender will likely have heartburn over the complexity of the project you're describing. They might, or will likely, want to see you hire an experienced, licensed, and insured/bonded GC to handle the project. Regarding your question about building an ADU, we do that all the time. Here again, we typically want to see that a licensed GC is leading the charge on that...whether it be with a 203(k) loan or some other sort of financing. As you gain experience, there are other programs that are less stringent, but a new investor putting 3.5% down tackling a tri-plex with an ADU DIYing it is going to cause lenders heartburn. PM me if you have more questions and I wish you well in your real estate adventures!

    1Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    I'd take it slower. There are a lot of rules and intricacies when it comes to FHA multifamily and 203k loans. Also, DIYing a major project while working fulltime on a single income with an infant to take care is going to equate to loads of stress, sleeping less than 5 hours/night for months, and unforeseen expenses.

    I'm not opposed to grinding - I got through undergrad and grad school while working fulltime and while completing two light SFR live-in rehab flips over a 5 year period. My wife and I did something similar not too long ago - she was working fulltime while also completing her undergrad and I was working fulltime, taking care of light renovations on another live-in rehab, and handling most of the errands and household chores to keep stress off her plate. There is no way I couldve done that while also trying to manage tenants and taking care of a baby. This is incredibly tough and taxing, and I'm concerned youre tackling too much at once.

    Another question - do you have any landlord or property management experience, or have you done this before? If not, I strongly recommend starting smaller. Managing one tenant is a lot the first time around. Managing 2 or 3 can turn into a fulltime job until you get your feet under you and streamline processes and workflow. Trying to complete construction on a property that is occupied during the work by both your family and tenants sounds like a nightmare. Doing major construction on your home while living in it is hell - it's months of chaos, mess, and disorder. Nothing starts your day off wrong like having to weave your way around chopsaws, lumber, boxes, and paint cans scattered across the living room as soon as you wake up. 

    If this is your first househack, start smaller and work your way up. I typically recommend to my clients to look for an SFR with an ADU as an entry point if they are still working fulltime.

    If youre deadset on this, then as far as converting the garage, check with the local zoning authority before buying anything. Most zoning ordinances require a certain number of parking spaces and lot size (sq ft) per unit and may not allow for permitting of additional units. Also, pay attention to floodzones and BFE. In most cases, to get CO on a new unit, the elevation of the new structure has to be a certain height above BFE, usually around 2ft in coastal states like FL. Typically in the southeast, when a garage is under a house, it's due to one or both of the issues above, and conversion to living space is prohibited. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    Sometimes you just have to jump in and learn to "swim"!

    FHA 203(k) is a great program, I've used it myself.

    You do have to get bids from actual licensed contractors for approval, but then you can do the work yourself and pull homeowner permits.

    One thing to be careful of is the lender will only issue funds for materials and labor AFTER the work is done. So, if you hire contractors, make sure they know they only get paid once work compelete, inspection passes and paperwork for lender draw approved.

    If you can, recommend trying to ge 4th unit done within the 203(k). Otherwise, where will you realistically get all the funds?

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  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 395 posts · 353 votes
    1y
    Quote from @Garrett Adams:

    Hello all!

    My wife, our infant son, and I semi-recently moved to the Tampa Bay area after I landed a great job in the area. I’m really enjoying the position, and my wife is loving the opportunity to stay home with our son for now while she prepares to go back to school to finish her nursing degree soon.

    We've always talked about starting a rental portfolio focused on small multifamily, and it's a dream I've been especially driven to make real. I may have found a tri-plex that could be a great first step. We'd be going owner-occupied with an FHA loan at 3.5% down and likely use a 203(k) Limited to finance a new roof.

    Once the roof is done, we’d re-tenant the property with market‑rate leases and move into one of the existing units. From there, I plan to DIY convert the ground-level garage under one of the existing units into a fourth legal dwelling. I'd pay cash for materials and do the majority of the work myself—keeping costs low. Once finished, we'd move into the new unit and rent out the one we were originally living in to complete the full 4‑unit plan, all within the FHA's 12-month occupancy requirement.

    Some questions I’d love help with:

    1. Any investors familiar with South St. Pete, particularly the Harbordale / Childs Park area? What are your thoughts on tenant class, market rents for 1 and 2bd units, or code enforcement?

    2. Has anyone here successfully added a 4th unit through a garage conversion? Any tips on dealing with zoning, floodplain regs, or permitting in Pinellas County?

    3. For those who’ve used FHA + 203(k) Limited: any lessons learned or lender recommendations? I’ve read horror stories about lenders freezing draws or rejecting post-close changes—looking to avoid those pitfalls.

    4. General advice for first-time house hackers doing DIY improvements on a partially vacant property?

    I’ve been doing a ton of research and modeling, and I feel this project could set us up for a strong start. Appreciate any wisdom from the community!

    Thanks so much,
    Garrett

    Hey Garrett,

    First off, I can’t express how important and excited I am for you to be committed to doing a house hack as your first investment.  I’ve personally house hacked multiple properties and used a variety of strategies from long term to short term renting and room by room.  This has set me up financially more than I could have comprehended.  It is a sacrifice, but a strategic one.

    Ive helped dozens and dozens of buyers just like yourself find, and get into, a house hack here in the Tampa Bay Area.  There are so many ways you can do it here and there most difficult part of a house hack is simply that it is a more emotional purchase than any other investment.  You will be living there - your family will be too.  Balancing the comfortability to profitability index is key as you consider what to do; and understanding all the different strategies of house hacking is going to really open up the options you have.

    I will somewhat second the mentions above: the 203k loan can be overglamourized on paper, and there’s a lot of assumptions you have going on in your plan that make me hesitate to greenlight it.  

    if you’re not currently working with an experienced agent, I’d be happy to interview for the job.  I’m actually working two other house hackers at this moment with different strategies for each of them (both of them are single guys; one is looking for room/room and the other STR house hacking).  There’s a few properties I think you should consider based on what you’ve told me so far that I’d love to go over with ya.  
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  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 679 votes
    1y

    Garrett—love the vision, man. After 23 years investing in Tampa, I’ll tell you this: house hacking is one of the smartest ways to start, but don’t overcomplicate it. Be careful with Pinellas—zoning and flood rules make garage conversions tough. 203(k) loans sound great on paper, but in practice they’re slow, picky, and most sellers won’t wait that long. You’ll need licensed bids even if you’re doing the work yourself. And unless the roof’s leaking, don’t touch it—rehab with “Tonka thinking”: keep it tough, simple, and only fix what truly matters. Also, whatever move you make, think about your next property and your end goal. I always reverse engineer my plan—make sure each deal catapults you toward the next one. Ask yourself: is this building cash flow or equity? Does it help me BRRRR or fund the next down payment? Every step should push you closer to that long-term vision.

    – Jorge

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  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    I did the FHA 203(k) loan for a remodel, addition, and converting our garage into an ADU. A much bigger project than what you are suggesting since you aren't using the loan for the fourth unit.

    The big challenge I had was how slow the lender was to cut checks to the contractor. They were so slow in fact that I had to threaten to report them to the CFPB in order to get them on track.

    I would recommend either (1) set clear expectations with the contractor that although you are slow to pay, they are guaranteed to get paid because the lender requires the work to get done and/or paying a little more and having the HUD Consultant come out more often to get the checks going out faster (smaller amounts but more frequent).

    2Reply
  • Amber Stout
    Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
    1y

    Hi Garrett! Congrats on the move and on taking the first step into house hacking. I'm an investor and mortgage broker in St. Pete and work with a lot of investors and house hackers in the area. I've bought a couple FHA house hacks myself so super familiar with what you're looking to accomplish.

    Harbordale and Childs Park are definitely in transition. Personally, I like areas in transition however it depends on what you're most comfortable with being that you'll be living there. 

    Code enforcement can be strict with garage conversions, so I’d check zoning and floodplain regs early. I do have a couple investor agents I work with that know zoning well and can help with that. 

    For FHA + 203(k) Limited, the lender matters. I've heard of projects stalling from poor draw management or vague scopes. Make sure your contractor bid is detailed *upfront*. Happy to help on the lending side if needed.

    1Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 679 votes
    1y

    Has anyone ever had anything positive to say about the 203ks? Seriously! I wanna write an article about this.

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    • Patrick Roberts
      Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
      1y
      Quote from @Jorge Vazquez:

      Has anyone ever had anything positive to say about the 203ks? Seriously! I wanna write an article about this.

      No. I dislike FHA loans in general, and 203k's just add to that. FHA loans are expensive and cumbersome, 203ks are even more expensive, and you're one step away from needing an act of congress if things get sideways in the project. Conventional is bad enough when it comes to red tape and regulations, and now youre adding the literal federal government into a construction project with a 203k.

      Most mortgage lenders push FHA because they come with big fat margins for the lender. There are select use cases for FHA, like when you have a qualified homebuyer who has a high DTI because they cant count all of their income for some reason, but not nearly as much as they are used at present. The reality is that if you need an FHA loan because your credit score is too low or because you cant come up with the cash to close, you probably dont have any business buying real estate. Probably not a coincidence that FHA default rates are relatively high.

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    • Jorge VazquezBusiness Member
      Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 679 votes
      1y
      Quote from @Patrick Roberts:
      Quote from @Jorge Vazquez:

      Has anyone ever had anything positive to say about the 203ks? Seriously! I wanna write an article about this.

      "act of congress" - hahahahahaha! Love it!
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    • Matthew PorcaroBusiness Member
      Lender · Long Island, NY · Member since 2016 · 456 posts · 336 votes
      1y
      Quote from @Jorge Vazquez:

      Has anyone ever had anything positive to say about the 203ks? Seriously! I wanna write an article about this.


       I've done them multiple times myself (including the Fannie Mae HomeStyle) and I attribute pretty much all of my success in building equity and cash flow quickly in an insanely competitive market to the power of 203k's and renovation loans in general. 

      The reason they get such a bad rep are: 

      1. Agents and lenders are the only ones that would tell their clients about them, and their truly is no real benefit to the lender or agent to do/promote a 203k. Understandably, its added work for them. However, its tremendously beneficial to the buyer to get access to all the funds to purchase and completely renovate a property for only 3.5% of the total. 

      2. Since very few agents or lenders do them, they do them sporadically, never truly learning how they work. They also only see one small portion of the journey. Lender: Contract to close. Realtor: Deal Search to closing. 

      They don't see what happens before and after that process... IE working with the inspectors, HUD consultants, contractors, etc.

      3. Residential construction is the Wild Wild West of the construction industry. "Contractors" working out of the back of their truck, writing estimates on napkins, taking 50% up front deposits. There's low barrier of entry in most parts of the country. 

      So people end up working with bad contractors that have little to no professional work experience, and this has become status quo. 

      The 203k and HomeStyle are built and handled the way construction is supposed to be run: Licenses, insurances, references provided, A clear line itemized scope of work, clear timeline, paid out in draws, with holdbacks until the end. 

      The "extra paperwork" everyone complains about on these loans is paperwork that should be on every single construction project. License, insurance, resume w/ references, clear scope of work.

      If every residential construction project started out with vetted, licensed & insured contractors with a clear, detailed scope of work, and clear timeline with milestone dates, there would be way less horror stories. But people can't fight the urge to go for the cheapest price from the no-name contractor. 

      I've been working in construction for 20 years, 15 of those in NYC working large scale design and build construction on projects ranging from $1M to $500M+. 

      Every single project I have ever worked on is structured the way that renovation loans like the 203k and HomeStyle are built. 

      I've successfully helped hundreds of people do 203k's and homestyle loans all across the US over the last 6 years. 

      Like anything else, once you understand and respect the process, its like anything else. 

      There's renovation specialist lenders all across the country that do these day in/day out with little to no issues. You just need to know what you're doing. 

      The 203k Way
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  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 679 votes
    1y

    I think you’ve got a better shot if the seller finances some of your repairs through a profit-sharing agreement or a novation. Then, you could structure your own novation to take full control of the deal.

    To make the offer more attractive, consider using a wrap-around mortgage—or even a lease option with a premium buyout in six months. You could also go the reverse BRRRR route: buy it with 100% private lending, fix it up, stabilize it, move into the final vacant unit, and then refinance with a DSCR loan.

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  • Garrett AdamsPro Member
    OP
    Member since 2023 · 2 posts · 3 votes
    1y

    I really appreciate all this positive feedback! This is truly an awesome community to be a part of. We're really excited to see where this road takes us. Keep the advice coming - I'll definitely be weighing all advice given as this is our first time and we're leaning on the experience of others. 

    I certainly will look into: 

    1. Deciding if it makes sense to roll the garage conversion into the 203k and get a licensed GC to come in and work on the project, I'll have to see how much I'd be allowed to do vs what we need to hire contractors for.

    2. Definitely look into the flood and permit and zoning situation at the property I'm looking at as this will be hard stopper obviously if that won't work out.

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Garrett Adams, always feel free to reach out if you have any lending questions.

    Side note, if you are not working with an investor/investor friendly agent, which few usually check off both of those boxes, I recommend reaching out to @Josh Green. He's probably one of the only agents on this forum that covers the area that is well versed in all things real estate investment that I have worked with on countless transactions. If nothing else, having a conversation with him will really enlighten you in many ways! 

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  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    1y

    I used to be a mortgage loan officer with CrossCountry Mortgage. They had a department that solely focused on 203K loans. I'd look for something like that--someone who focuses on 203K and only 203k all day every day. 

    I house hacked a SFH for 3 years. It's a great move!

    1Reply
  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    1y

    So I have alternative idea. Purchase the home regular FHA. Then get a RENO HELOC that is based on the new ARV (after adding the additional unit). The big advantages of this are:
    1. Much easier - I get calls for 203Ks all the time and almost none follow through.

    2. No draw fees/ inspections etc.

    3. You pay the contractor

    4. 10 yr Interested only

    5. Close on first home much quicker and easier.

    Most people don't know this exists. I can help with both.

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  • Joey Keske
    Investor · Tampa, FL · Member since 2024 · 15 posts · 7 votes
    1y

    Sent you a message!

    0Reply
  • Rick Stout
    Realtor · Tampa/ St. Petersburg MSA · Member since 2018 · 25 posts · 13 votes
    1y

    Hey @Garrett Adams, Congrats on your new role, and relocating to the Tampa MSA. St. Pete is amazing and a GREAT area to house hack. My wife and I have been doing it specifically in Pinellas (St. Pete) for almost 7 yrs. I was an investor turned Realtor to help people exactly like you, because I realized 99% of Realtors don't have a clue what actually goes into these types of deals. I say all of that to say - You are on the right path, and I couldn't be more excited for you. 

    I would say starting with a small multi family (Duplex-quad) is one of the best ways to build wealth and start your real estate portfolio. Don't let these private money guys talk you out of an FHA loan, its a great product for someone getting started (It's how we started) and the 203k loan could be helpful. However based on the details you shared, it may not be needed, especially for just a roof. We could get the seller to pay for that for you. ;-)

    As for adding the additional dwelling, we would need to make sure the city would allow that, most agents don't know to look for that and a lot of people get stuck buying properties they think have more potential than it actually does. Happy to connect and discuss in much more detail.

    For your questions. 1. Very familiar with St. Pete, and childs park is not a place I would prefer to owner occupy with my wife and new born, I think there are a lot of better areas that will see appreciation still.
    2. I have dealt plenty with the city for this, happy to discuss the processes, would be a lot to type.
    3. Biggest lesson learned, the contractor selected makes ALL THE DIFFERENCE.
    4. DIY is a great way to add value for cosmetics, and or to increase rents on a budget. At times it can cost you money doing things wrong or that don't add value or increase rents.

    Garrett, good luck on your search, I would be happy to connect with you and see how I can help answer any questions you have or connect you with any contractors or referrals you may need.

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