House Hacking Help and Advice

[Dane Sawyer]

Hello Biggerpockets members,

My name is Dane and I am a recent graduate living in the Houston area. I've been reading the forums and listening to the biggerpockets podcasts religiously and have now come to the point where I need some advice. I am looking to move into an area in which I believe has great potential for growth considering the research I've done on the Houston market. My concern is that I believe I may be reaching for too high of a property starting out. I am looking at 4 bedroom houses some with 3 and some with 2 bathrooms at around 1500-2000 sq ft. I am lucky enough to have three friends that are willing to sign at least one year contracts to rent out the additional rooms as they want to be closer to their workplaces. Based on their budget I will easily be able to afford the mortage and have some money left over from their rent every month (I have already been approved at 4.75% rate). I have found what I believe to be a great deal but am slightly concerned that it may be too large of an investment starting off. It is around 260k but is still one of the cheapest houses close to downtown.  My realtor is a family friend that seems to think this is a great opportunity, but at the same time my main concern is thinking about five years down the road trying to rent out a 4 bedroom rather than something easier like a 2 or 3 bedroom. Without getting into too many more details I would like to see what information you all would be curious to know that should affect my decision on this. I also have the benefit of the buyer being really motivated to sell as they are paying two mortgages as of right now. Looking forward to the feedback!