Hey everyone, I’m potentially moving out to the Philly area for work. Looking to house hack in the area hopefully within 30-45 mins of the PHL airport. Would appreciate any advice on this market as I’m unfamiliar with the area. Thank you.
Pick the 3-unit if the other two units cover PITI on their own. A duplex near PHL will usually still leave you paying part of the mortgage, the third door is what gets you close to living for free. Tradeoff is more tenants, more turnover, and tighter 3-4 unit financing. I am a broker in Sacramento and I run the same math on every house hack. Hope this helps, DM me if you want a second set of eyes on the numbers.
Pick the 3-unit if the other two units cover PITI on their own. A duplex near PHL will usually still leave you paying part of the mortgage, the third door is what gets you close to living for free. Tradeoff is more tenants, more turnover, and tighter 3-4 unit financing. I am a broker in Sacramento and I run the same math on every house hack. Hope this helps, DM me if you want a second set of eyes on the numbers.
@William Johnson, I'd hold off on picking a property until the move is certain. A house hack usually means living there a year or more, and an owner-occupied loan will lean on that job. I've done house hacking myself and would be open to talking through what I learned. Is the job offer already in writing? Which strategy do you want to grow into after this first one?
Hi Marc, job isn’t set in stone yet just doing some preliminary research to be prepared once I hopefully get it. Im looking to continue to house hack live in one for year then try and find the next and grow my portfolio that way. Would love any advice. Thank you
Hey William, welcome to the area. I'm a loan officer in PA and I own a few rentals myself, so here are a few things I'd keep in mind.
30-45 min from PHL gives you a lot of options: Philly, Delco, Montco, Bucks, even South Jersey over the bridges. Just know Philly's transfer tax is a lot higher than most of the suburbs, so factor that into your cash to close.
If you go 2-4 units, make sure your preapproval is actually for a multi. A single family preapproval number doesn't always carry over. Also the lender won't count the full rent from the other units, so run your numbers with a haircut on the rent.
Since you're relocating for the job, have your offer letter and start date ready. Lenders will want to see it, and it can slow things down if you don't have it lined up early.
And if you end up in Philly proper, you'll need a rental license for the other units.
Once you have a specific property in mind, send it my way and I'm happy to see what the numbers would look like.
Hey William, congrats on the move. House hacking is a great way to land in a new city since you get a place to live and a rental at the same time.
A few things to sort out early: whether you want a 2 to 4 unit or a single family with rooms to rent, and what your down payment looks like. Owner-occupied loans on 2 to 4 units can go as low as 3.5% down, and the rent from the other units can help you qualify. Getting pre-approved before you start touring will also tell you which neighborhoods around the airport actually pencil out.
Happy to walk through the numbers with you so you know your budget before you get there. Give me a call, my number's in my signature below.
Hi William, house hacking is one of the best strategies in real estate. I do have a close friend that is the top agent in the Philly area and is also an investor. Happy to understand what area/s you're considering and price point and can make an introduction.
William, one more option to put beside the duplex: a single family with four or five bedrooms near the airport, rented by the room. You live in one bedroom and rent the others to separate people on their own leases.
It suits that spot. Airport staff, hospital workers, traveling nurses and people on contracts often want a furnished room for 3 to 12 months, not a whole apartment. And because each bedroom carries its own rent, the total often beats a duplex bought on the same budget.
Three things to check in Philadelphia before you count bedrooms:
The zoning limit on unrelated people living together. Philadelphia caps it in many residential districts, and that number decides how many rooms you can legally fill.
The city's rental license rules, and whether renting rooms in a home you live in needs one.
How your lender treats room rent. Rent from the other units of a 2 to 4 unit helps you qualify. Rent from rooms in a single family often counts for little or nothing, so plan to qualify on your own income.
If you go that way: one lease per person, rent due the same day for everyone, and the utility split written down before anyone moves in. Splitting by the days each person actually lived there is the fairest way I know, and it heads off most of the arguments.
I rent rooms in single family houses myself, so I'm biased, but run both numbers side by side before you pick.