First Time House Hacking

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First Time House Hacking

Jilanie Staples
Ballston Spa · Member since 2019 · 3 posts · 0 votes

Hello everyone!

My name is Jilanie Staples. I am new to BiggerPockets but have been interested in the idea of purchasing a mutli-family property and owner-occupying for years. I am finally at the point where I can afford (barely) to get into a multi-family home and I'm actively looking between Albany, NY up through Queensbury, NY - though preferably somewhere in the middle. I have talked to several loan officers, most detailed with my personal bank (SEFCU) and they offer an FHA loan, but not a 203K loan. They DO offer a program called SONYMA RemodelNY Renovation. Has anyone local heard of this program or used it before? How does it compare to a traditional FHA203K loan? Also, I'm approved for up to $200k (could get more easily if I asked for it according to the loan officer at SEFCU) which would equate to approx. $1550/mon w/local taxes and 3.5% down. Any advice regarding what I should be looking for in the deal would be very welcome as well! Essentially I want to find a place where I am living for free or making money from renting out the other units. Can this be done with these remodeling type loans?

Thanks all!

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  • Rob Massopust
    Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes
    7y

    Assuming you need a loan and rehab in one loan, Fannie Mae offers something similar to the 203k loan.

    I would also expand my search to 4 units, the income from those units help you qualify

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  • Dion McNeeleyPro Member
    Rental Property Investor · Port Orchard, WA · Member since 2018 · 116 posts · 123 votes
    7y

    @Jilanie Staples, I hope it all goes well for you.

    First thing I would do is look at rents in the area for similar size and amenity places. If rents are low then you know you will be still covering some out of pocket. If they are higher it may work better for you.

    With your first duplex it may be difficult to eliminate the entire mortgage. This is easier to do with a 4 plex but then you may have to borrow more.  

    Good luck. 

    Podcast Guest on Show Financial Freedom in 10 Years and $200K Cash Flow with a Small Portfolio
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  • Jilanie Staples
    OP
    Ballston Spa · Member since 2019 · 3 posts · 0 votes
    7y

    Thank you Rob and Dion for the advice! I'll certainly take it into consideration during my first buy.

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  • Michael WallimannPro Member
    Rental Property Investor · Western Washington · Member since 2018 · 151 posts · 60 votes
    7y

    @Jilanie Staples Welcome! I have a couple investments in that area. Property taxes are pretty obnoxious in Albany for the most part and the market seems really hot and pretty bloated at the moment. I have however seen a couple duplexes online that look close to turn key for around 200k in Ballston Spa/ Saratoga recently. You probably wouldn't need the 203k if you went for one of those. If you're not necessarily trying to find a value add property but just trying to get into something so you can live for free there seems to be some decent properties available north of Albany. Although most all of the new inventory seems to be single family right now. If you keep looking constantly and have a good agent on the hunt as well you will find your deal soon enough. Best of luck to you!

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  • Jilanie Staples
    OP
    Ballston Spa · Member since 2019 · 3 posts · 0 votes
    7y

    Thank you Michael Wallimann! I have already talked to an agent that was recommended by a friend who has a couple of multi family houses in downtown Saratoga Springs and she is on the hunt for me as well! I explained to her that cash flow and house hacking are everything, of course my wife and I have things that we'd prefer in the house but if the math works then, ultimately, money talks!

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  • Dion McNeeleyPro Member
    Rental Property Investor · Port Orchard, WA · Member since 2018 · 116 posts · 123 votes
    7y

    Hi @Jilanie Staples, I like that you are reaching out to BP before you started getting into real estate. I wish I had done that. It would have saved me several years of frustration. 

    Here is something to consider with small multi family. You said your goal is to live for free or make money from the units. I primarily have been doing duplexes. If you live in a duplex you will more than likely reduce your own monthly expense for housing. It is possible with a really great deal to eliminate it completely. In order to eliminate your housing expense and make money it would take more units. If you were to have 20-25% down a duplex can cash flow with you living in it but in order to have positive cash flow with 3.5% down you may want to look at a four plex. This may bring the purchase price up but the numbers still work better with more units. 

    Good luck, 

    Podcast Guest on Show Financial Freedom in 10 Years and $200K Cash Flow with a Small Portfolio
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