All Forum Posts by: Justin Laughlin
Justin Laughlin has started 1 posts and replied 2 times.
Post: Seeking House Hacking Advise
- New to Real Estate
- Dallas, TX
- Posts 2
- Votes 4
Thank you for the replies everyone! You all make great points and there is certainly a lot to consider before making any concrete moves. I will make sure to return here with any other question that may pop up over the coming days/weeks. Thanks again!
Post: Seeking House Hacking Advise
- New to Real Estate
- Dallas, TX
- Posts 2
- Votes 4
Hi Everyone!
I am extremely eager to begin my real estate investment journey and am hoping to get some advice on how to begin house hacking. My girlfriend and I are currently leasing an apartment together in the North Dallas area ($2k/month), but are looking to buy a property and begin house hacking as soon as this lease is up (July 2023). After doing lots of research, we have decided that house hacking with an FHA loan will be our strategy. As of right now, I have around 30k cash ready to deploy on a property, but by the time our lease is up and we are in the market to buy, this number will likely be around 40k-50k.
We have been looking at lots of properties and have been finding it extremely difficult to find anywhere that would generate a net positive cash flow. Multi-family homes in the area start at ~450k, so those are really out of the realm of possibility given how high the mortgage would be with such a low down payment, so our focus has really turned towards a single-family home purchase, with the goal being to rent out the other rooms.
It seems like finding a 3-bed single-family in our market at or under $300k is reasonable, which would result in a ~$2.5k mortgage payment. Making the assumption that we could rent out the other 2 rooms for $1k a month, and then rent out all three for $1k upon our exit (after living in the home for 12 or 24 months), it seems like it could be cash flow positive at that point.
So, my questions are:
- Given the current market conditions, is it still a reasonable time to begin a house hack?
- Is my down payment enough to get started?
- Are the assumptions I'm making realistic?
Thank you so much for taking the time to read this lengthy post and I look forward to any and all help/guidance!
NOTE: If you have any general real estate/house-hacking advice within the Dallas area please share!