All Forum Posts by: Sebastian Roy

I'm in a similar situation, I'm about to purchase my first house hack and ALREADY have 2 real good friends offering to move in. At first I was against it but I also don't want to live alone so I was thinking about charging cheap rent and just being like roommates. Internally I really want to rent to friends but realistically thinking it's probably best not to rent to friends you don't want to lose. 

Another option I am contemplating if I don't rent my spare BR to friends is renting my bedroom on airbnb or VRBO just like @Craig curelop mentions he did in his book "The House Hacking Strategy". Of course this option works best if your single and flexible. 

Anyways, good luck and I hope this thread helps!

@Joe Splitrock Great advice, I will check out the link you sent. Thank you!

@Craig Curelop I agree, I think it is ridiculous too.What they mean is that a lender would think I am just trying to get cheaper financing and I won't actually be living there, as stated. For example, the lender thinks there is no legitimate reason why I would go from a 2 unit to a 4 unit with more tenants, less freedom, etc. I've only heard this from a few people, most say I should have no problem and besides I have already approved this with my lender, I just didn't want to trap myself on my first property. I am also aware that you can only have 1 FHA loan at a time.

By the way, I am currently reading your book "The House Hacking Strategy" and have learned so much from it, Great book!

Thank you, Sebastian.

@Calvin Ozanickexactly. I mentioned to my lender that I am planning on house hacking a second property and he had no issues with it, he actually said he has had a lot of investors do that. like you said if your honest and a good client I don't see why there would be a problem, especially if you had a legitimate reason -closer to work, more square footage, bigger yard, etc. Thank you for your input!

@Max T. Thanks for the input! A 4 plex would certainly be ideal, but they are few and far between.

@Brittany Washington I have heavilyconsidered using a property manager after reading Ken Mcelroy's "abc's of property management" but i decided it is probably best to self manage my first few properties so I can get an understanding of it as well as learn how to manage future property managers as I plan on hiring a manager in the future.

@Ryan LubyYes, I agree. I've talked with several people about this and they recommend starting with a 4 unit but its not the end of the world if I buy a duplex, for example. I have yet to see any 3 or 4 unit properties that fit my criteria in my market but I will just continue to search for leads.

   Thank you for the advice and it was good meeting you last night! I hope to see you next month.

@Bill B. , @Jon Reed great to hear! I figured it may vary between lenders. Thanks for your input, Cheers!

     Hello BP, I am currently looking to buy my first multifamily property in which I will house hack and I plan on living there for the 1 year minimum requirement then buying another multi-unit property to do the same. I have had 2 investors tell me that lenders will not let you "move up" in unit size for your next house hack. For example, going from 2 units for your first property to 3 or 4 units on your second property because in the lenders mind you are most likely going after the cheaper owner occupied financing. 

    I have already been pre approved by a lender in which I intend to use and I told him about my plan for house hacking a second property and asked him about this situation and he said there would be no problem with me obtaining owner occupied financing on the second property. One investor told me that the lenders do not like to talk about this subject. I feel like a response to this question is somewhat negotiable or persuasive and may vary from lender to lender, but then again have never experienced this before so I'm just guessing. Maybe I could offer to let my lender visit the property unknowingly so that he can see that I am in fact occupying it, or especially if I am moving out of state, etc. 

   I am very interested in hearing about possible solutions to this "problem", as well as personal experiences if anyone has dealt with this situation.

Thank you, Sebastian.

@Joe scaparra Thank you very much for the kind words, I highly appreciate it! Life is great!!! Cheers.