All Forum Posts by: Riley S.

Just to confirm for you, I'm also going to use a smart lock where the code can be changed but doesn't need to be connected to WiFi. Not sure about the thermostat, sounds great but not sure how it would work with tenant needing to pay for the internet.

One thing I have heard as well is to put in the terms that if you fail to make payments, the seller will be able to take the house back from you. This helps the stress of a possible foreclosure if you fail to perform. Just something to consider when negotiating.

I am going through making the same decision as you right now, and despite everyone's advice for house hacking, I am starting with long distance investing. My reasons:

1. My local market is just way too expensive. I'm in a beach city in SoCal, so even with house hacking, my mortgage will still end up being twice what I pay now for rent. I worked through all the numbers of FHA and Conventional loans and it just doesn't make sense (plus I wouldn't even be able to afford it on a six-figure income) with current interest rates, so I will gladly rent until I can find a house hack deal that I can afford, which will most likely come from creative financing.

2. Long distance investing will not only appreciate for me, but will also bring me cashflow. Cashflow is out of the question with a house hack for me. Yes, there are struggles with long distance management and such, so make sure you have people you can work with to help you. Your team is what will make you successful or not. It seems all the stars are aligning for me in the market I'm looking in for long distance investments, so I'm choosing to do it first.

3. Down payment costs: 3.5% for FHA in my local market is about the same investment as 25% in my long distance market. I will end up having more equity in the investment and not deal with PMI as well. And I have a higher chance for a Cashout/HELOC refi with the equity in the long distance investment to continuing acquiring more properties down the line, which will add to my cashflow in the long run, and maybe one day be enough for me to buy where I actually want to live :)

Hope that helps you in your decision!

Hey BP community, I'm currently renting a unit in a triplex. After doing tons of real estate research, my end goal would be to buy the property and house hack to live in one unit and rent out the rest. I've already spoken with the owner and they are willing to sell me the property to avoid realtor fees and the headache of on-market listings. They mentioned they still pay a mortgage on the property, but would consider seller financing. No numbers have been discussed yet (amount they owe, interest rates, down payment, purchase price, etc.) I want to know my strategy before getting into the details.

So here's my question: what is the best strategy to structure this deal?

I know they have over 50% equity. At this point, traditional financing through a bank is not an option with current interest rates. I would NEED to rent the other units to afford the monthly payment. I'm hoping to make a deal with the owner for seller financing, but how is it possible if they have a mortgage to pay as well? Hybrid financing using Sub-To and Seller Finance? Has anyone structured a deal like this in the real world? Any help is appreciated. Thanks!

I bought a home that I had hoped to live in, but due to circumstance I actually don't live there full time and have just kept it as a vacation rental. I got the loan as a primary residence with 3% down and just waited a year before renting it. I also don't have any other mortgages in my name, and I haven't run into any problems. I think you'd be fine with classifying it as primary residence and waiting to rent for a full year. You get into mortgage fraud trouble if you buy as primary and then list it for rent right away.