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Updated 6 months ago on . Most recent reply

User Stats

71
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Christopher Morris
31
Votes |
71
Posts

Next Step in my Portfolio

Posted

Help BP! 

Any advice would be helpful here! I am a current house hacker in the northern NJ area in a multifamily home. I am hoping to house hack again either in the same town or one closer to where I work. 

From a capital standpoint, I am comfortable with another down payment on a house hack on a multifamily. The one issue I think I’ll have on my hands is I prefer to house hack again in the same town (appreciation seems to be great along with rental amounts) but I’ll need to refinance my current house hack into a conventional which I doubt is at 20% equity yet since I don’t think I’ll have a valid excuse to have two owner occupied loans in the same town.

Come November, I’ll be in the house for a full year which makes me eligible to move out. I added a decent amount into the house (new paint, new hot water heater, brand new kitchen, better layout) but I’m not sure if that’s enough for me to appraise for 20% equity. 

My dilemma is I really would like to stay in my current town to house hack but I do have a backup town in case I can’t make it work in my current town. Do you think I should wait until I get 20% equity since I am now familiar with this town? Or dive into the other town and learn from scratch all over again on the rental market? 

Let me know your thoughts BP! 

Most Popular Reply

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2,268
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Jason Wray
  • Banker
  • Nationwide
1,276
Votes |
2,268
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Jason Wray
  • Banker
  • Nationwide
Replied

Christopher,

Now that Fannie Mae came out with their New primary home loan program you already qualify to buy another home.  Since your in a Townhome I would suggest start looking for a MFH 2-4 unit to move into and you only need 5% down payment.  The other good news is you ca use the rents of the other units as income to qualify so you can essentially qualify for a higher home price.

That sets up your next investment property as you move out its now a 2-4 unit with multiple doors bringing in more income.  Those extra doors offer a higher passive income and help to buy another home sooner once you file that next years tax returns.  Not to mention MFH 2-4 units appreciate much faster than Townhomes in general.  

  • Jason Wray
  • [email protected]
  • 727-637-4289
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