All Forum Posts by: Benjamin Sulka

@Sarah Kensinger

Nice!! I used to work for a company called the Karcher Group that's located in Canton. 

Tyler, 

Welcome to BiggerPockets and I'm glad you're already thinking about house hacking! 

I'm a newbie as well and this strategy almost always seems to make the most sense for new investors. I would parrot what Nicholas said above and this is something that I've come to learn as well. House hacks, especially small multis, are going to cash flow once in a blue moon. Especially with high rates. 

1) You're occupying one of the rentable units. Run your numbers for what things look like after your move out. 

2) Down payment is typically lower because house hackers put 5% down or less. This means your principal is higher which means your monthly payment is higher. 

3) You have to pay mortgage insurance when you're putting down less than 20%. This is another added expense to consider.

Start networking with more people in your local market that are involved in real estate so you can really start to learn from the people who are doing this every day. Investors, agents, lenders, handymen/contractors, title companies, etc. I've gone to many real estate meetups and talked to many seasoned investors who all wish they would have done more networking when they first started. 

You got this!

Sonia, 

Welcome to BiggerPockets! 

I have no insight into the Maryland market but you're doing the right thing by consulting with experts on here. Go to some REIAs or meetups in your local market to meet investors and get the inside scoop on some areas that you're looking at. 

I'd also start talking to lenders and agents who have experience with investors and experience with the strategy you're looking to pursue.

Best of luck! 

@Sarah Kensinger

I see you're from Ohio! I'm an Ohioan as well near Cleveland. We should definitely talk real estate sometime! 

Happy to! I'm in the digital marketing field so I keep up with things going on in the industry basically every single day. 

Cheers! 

Justin, 

Great to see you seeking out info and getting your questions answered here on BP! 

I know you're young. Explore some of the options that other individuals listed above but if worst comes to worst, just keep saving your bread until you hit the number you're seeking. 

Pick up a side hustle that you can do outside of your normal W2. I'm just starting on Fiverr where I'm going to do freelance Google Ads work. 

Find more ways to boost your savings even further. Either increase your income, decrease your spending, or both. I started with decreasing my spending by making an itemized personal budget and now I'm seeking alternative ways to bring in money. 

All the best!

Troy, 

I'd go the 5% conventional route especially if you're trying to buy a 4 unit. 3 or 4 unit properties need to pass the FHA self-sufficiency test which can be incredibly difficult in a high interest rate environment.

There's many advantages to pursuing conventional over FHA which Austin did a fantastic job of listing above.

Best of luck!

Kevin, 

Definitely try to go 5% down conventional (I know the extra 1.5% is probably a lot of money) but it won't have to pass the self sufficiency test which makes FHA so hard for 3-4 unit properties.

Best of luck!

 No problem! You got this

Cameron, 

Start with a house hack if possible. Owner occupying a property will give you the opportunity to learn how to landlord and manage real estate. 

For a DSCR loan, you'll need to put down 20-25% which is a lot of money out of pocket.If you house hack, you can put 3.5% down with FHA or 5% down with conventional and retain a lot of your capital.

You're young and it's obvious that you already have some great financial principles instilled within you. Starting young with house hacking is an incredible way to get you on track to building long term financial wealth. 

All the best!