All Forum Posts by: Matthew Bossick

I'm confused by your question. You want to house hack but have your tenants sign a lease option while being your roommates? Just want to make sure I understand correctly.

Can you owner occupy or is that not an option? If it is, you could do an FHA and live in it for a year and then rent it out to avoid lower income housing. Otherwise you'll be dealing with what you pay for with a potential of not so great tenants which is even worse when the property is out of town.

Using the rental calculator, sounds like with the new numbers the cash flow would still be low. What does your cash on cash return show up as? 

Also, were you able to find a credit union to allow you to put 10% down or are you now putting down 20%? This would affect your COC return.

I personally always look at COC as my biggest crieria along with $250 minimum cashflow. However, if you plan on selling after a couple years of cash flowing, the 70-80% the bank will let you refi of the 40K+ in equity along with the equity from debt paydown over the 2 years could provide a nice line of credit for another home. So in essence you would have 2 homes in 2 years time with the cash you're putting into one.