House Hacking considerations 2023

[Matt Smith]

My name is Matt and I'm looking for my first true investment property. I'm currently living in the Tampa Bay area and have been in my primary residence for 10 years. I recently took out a HELOC of 150k. I've been doing my own research, networking and figuring out the best strategy to get into REI in todays challenging market. I just listened to the most recent BP episode with David Greene, Henry, and Rob and they all talked about how house hacking kick started their journey. After listening, thats the route I want to take. What are some considerations I should be aware of when house hacking? Loan type? Do I use my HELOC? Where? How many bed/bath/sqft? SFH or MFH? etc. Any and all advice is appreciated. Thanks

[Scott E.]

I started with a house hack in 2011 (I bought a 3 bedroom SFH and had roommates) so I'm definitely a fan of house hacking. Some comments from my experience...

-Multifamily is better than single family if you can find one. Living with roommates sucks. Plus, your multifamily deal should cash flow better, especially when you eventually move out and rent the final unit out.

-You could use your HELOC as the down payment on your new property. Probably wont need the full $150k. In a house hack you can use an FHA loan and put 3.5% down (although you will need to pay PMI)

-Bed/Bath/SF is going to depend on your market. The best small multifamily properties around here are buildings that have all 2 bedroom, 1 bathroom units.