All Forum Posts by: Daniel Haberkost

@Billy Thurston

Yes, as long as you occupy the house you’re in now for a year, you can then do another owner-occupied loan for the next property and only put 5% down going conventional.

That’s assuming your credit and debt/income ratio allow you to qualify.

@Parker Fleming

That makes sense, I’m down in The Springs so I’ve never explored Denver’s market much myself but even though it’s competitive I’m sure you can make it work.

Best of luck!

@Parker Fleming

Welcome to the forums Parker! Sounds like an achievable goal, out of curiosity, are you planning to try and buy in Denver?

@Ken Swearengen

Sounds like a plan, good luck!

@Ken Swearengen

Yeah it definitely sounds like the numbers work out for a house-hack. Why did the owner take it off the market ?

If you do get it under contract, make sure you use a reputable inspector!

@Ken Swearengen 

So if you purchased at $250,000 what would the mortgage come out to? I have no knowledge on what property taxes & insurance are like in your market which can vary quite a bit. 

In my opinion, a successful house-hack should at least completely eliminate the mortgage/utilities which leaves you with repairs & maintenance/vacancy/cap ex/etc. (Unless you're in an extremely expensive market)

Your description of the seller makes me think there is likely a large amount of deferred maintenance. In general, you should budget for significantly more capital expenditures with a house that age. 

Also, what jumped out at me is that you said it was wet in the basement and your agent "wasn't that worried about it". Unless your realtor is a trusted family member or someone you've known personally for a long time I'd be wary on taking their advice on that. Again, maybe I'm wrong and this is someone you know you can trust but be careful as their interests are in making a commission which rarely matches up with what you want long-term. 

Ultimately, you need to run the numbers and figure out what purchase price creates a monthly payment that makes sense based on the rents. Then make an offer with the proper contingencies so you can back out/renegotiate if the inspection finds serious issues. 

-Dan

@Diamond Bellamy

That’s exciting! Do you have an idea what your first move will be ?

@James Allen Jr.

If you’re in an expensive market then its very likely that people are renting by the room. Have you looked around on Facebook marketplace, Craigslist, and other platforms to see if there are single room rentals on the market?

@David Carrasco

Hey David, the guy above me makes several valid points. Especially if you are military and are planning on using a VA loan.

One of the biggest sources for experienced investors to buy off-market properties at a discount is from people in the army who bought with a VA loan even though they were only going to be here for a short time.

Are you military ?

@Andre Kepler

When I bought my current house-hack last year I just needed to provide two pay stubs from my current employer in order to satisfy the requirements of the underwriter. At the time I had just started the new job and had to actually wait to get my second pay stub in order to prove I was employed. He asked for 2 years of work history as well but my previous jobs were in completely different industries and it didn't matter.

As you mentioned, talking to a local lender is the best route to go. But, unless Fannie/Freddie's rules have changed, you should be fine assuming your debt to income and credit are where they need to be.  

-Dan