House-Hacking for Dummies (me)

[Jamee West]

I am here to generate some thoughts/information regarding this kinda-sorta idea that I have! Real estate investing is new to me. In my spare time I have been utilizing BP podcast and the Ultimate Beginners  Guide by Josh and Brandon.

So real quick- I am currently renting and my lease is up in May. For my next move, I'm thinking about an FHA loan on a property that will also act as an investment at some point.

Which brings me to the idea house-hacking. Please share with me any experience/knowledge on the subject! 

Some points to get thoughts generating:

1. What are some important things to consider when House hacking?

2. What are some important things to consider when taking out an FHA loan? (Any tips on the process itself?)

3. Multi family units seem sparse in my location - any tips on searching for those types of properties (and things to consider when I do find potential properties)

4. How to evaluate whether or not I am getting myself into a good deal that will ultimately bring in cash flow 

5. Any valuable resources to assistant in the process 

Thanks! :)

[Robert Leonard]

@Jamee West Welcome to BP and the world of real estate investing! House-hacking is a very good way to into real estate investing.

In my opinion, one of the biggest things to consider when considering house-hacking is the property's value as an investment both when you live in it and after you leave it. When analyzing a house-hack rental property opportunity it is very important to run the numbers both ways. Most people forget that they need to consider the property from an investment perspective when they no longer live there. If it only makes sense in one scenario but not the other, it's likely not an opportunity you want to pursue. 

The biggest tip I can give on obtaining a mortgage is to be very organized and have your credit in order. This goes for all mortgages, not just FHAs. Your life will be much easier if you have all of your paperwork ready ahead of time and if you have made sure you haven't applied for any credit recently/made your credit as strong as possible.

I have created a multifamily rental property calculator in Excel that I find to be a very valuable resource. I'm happy to share it with you, just send me a PM. As far as evaluating a deal for cash flow, I can walk you through/chat with you about that using my calculator if you'd like.

Hope this helps.

Robert Leonard