All Forum Posts by: Nicole Jones

I'd like to follow this as well. As far as I know (which unfortunately isn't much on the tax side) all of those mentioned would be allowable operating expenses. I have an owner occupied duplex that I self-manage and I typically roll all of that into my business expenses at the end of the year. I've had one of my duplexes for about 7 years and when I wasn't occupying and I lived in another city I would add the gas and mileage and even hotel stays. Obviously all maintenance, repairs etc. I write off as well. Interested to hear other responses. 

Also... Congrats on House Hacking!  

I'm aware of PMI. I always try to avoid it. Thank you @Andrew Beaver! I'm more just curious if there's ANOTHER calculator besides the ones we all know of that would help someone to stay within a certain ROI while House Hacking. I could use a regular calculator and just account for myself renting one unit but in that case I would almost never be able to reach the numbers that "good deals" fall under in the traditional non owner occupied investments. Again maybe I'm over-thinking the idea.... But thanks for your input. I appreciate it!

Welcome Chris, listen to the podcasts. They have been the most helpful resource for me. Multi-families are my favorite... congrats on making the 1st step and posting to the community :)

@Aaron Gould Great story! The only advice I could give you have already done which is to release any fears about taking that first step and take action! I am a strong believer in house hacking as well and am currently doing just that in Fresno, Ca. I'm hoping to accomplish it in LA in the next year but wow... such a hard endeavor. Congrats to you!

Thank you @Thomas S. I guess I was overthinking imagining that it would be a different calculator... what do you mean by the only different factor is the mortgage requirements? 

Does anyone know if a house-hacking calculator exists? Or how a "good" house-hack could be calculated? I imagine one standard calculator couldn't exist to evaluate all deal around the country just because there are markets that are tougher such as LA.... So I guess the same calculator could be used but any baseline %'s would have to fluctuate depending on what market you are looking to accomplish this in. Anyone having any info on how to calculate such a deal would be greatly appreciated.

@Ola Dantis all credit to @Conor Hesch 

Thanks @Anmmar Alsaggaf I did think about that possibility 

@Matt Tyykila

I read a posted suggestion this morning from @Conor Hesch who suggested this: I'm not able to properly tag his name apparently and hopefully he doesn't mind me resharing his advice to another asking a similar question...

"Here is what I would do

1Buy a Duplex. Use the loan that I just used to buy my first duplex: Portfolio Conventional Loan, 3% Down Payment, No Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than that one that I know of that would allow less down payment would be a Veteran Loan (Vets only). Be alert, if you time it right you might be able to get down payment assistance/grants (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex).

2Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down Portfolio Conventional loan that I used requires that you do not own any other homes at time of closing. So start with that then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.

3Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.

The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now."

Thanks @Tony Beal! I assumed that was the most direct way to handle that just wasn't sure how easy or hard to would be. Sounds like it wasn't too difficult. Thank you!