House Hacking to get start Real Estate investing
Hello all! I have a question, and I'm hoping someone has someone that can help me get into doing this. I have admitted to not having any capital of my own, so I am trying to find alternatives to helping me start. I would like to find a multifamily home (duplex or triplex) where I can live in one of the units while taking care of the property/tenants. But this is what I'm thinking ( and where I need your help) is finding someone to fund the investment, and then of course, talk about how to work that whole thing out. As long as I live in the unit, be an LP to the investment, get 80/20? ( I don't know, again something to be talked about, regarding the split) and whatever else needs to be done. I'm still trying to find someone experienced who can help me get this going. I am actually looking in the Coos Bay, Oregon area ( I had to say "Bend" because they didn't have Coos Bay listed in the drop down for "location" above. If anyone is living in Coos Bay and could help, or anywhere in Oregon that could help, that would be a plus. Otherwise, I need thoughts, ideas or workaround ways to do this? I would love to have a working relationship with a capital partner/investor who may be interested in something like this. Please let me know. Thank you all for your time and have a Beautiful Day! ~Tara
Most Popular Reply
House hacking is great and a good way to get started and it's great that you ask: 'how can I" instead of saying "I can't". But partnering is a really bad idea, expect if you partner with your parents maybe.
Let me be blunt: you are not an attractive partner, what you could offer has next to no value, but comes with the full risk of partnering with someone. It's basically like why would you partner with your broke tenant. (sorry for beeing so direct)
Avoid FHA if you can, you'll pay for it over and over. You need 5% down for a conventional load, that's much more attractive to a seller, better interest rate and very important: you are not locked into paying PMI forever.
A duplex in Coos Bay will run you 500k, so you'll need 25k for down payment, plus some extra for moving, paint and carpet.
Family money is really you best move at this point unless you have another way of generating cash. Find a side hustle that will generate you 2k per month and you'll be ready in a year. For example flip couches or appliances. Plus you learn a lor of skills you will need later to invest.