House Hacking Questions.

[Tyler Yontz]

What’s up everybody, 

I am located in Portland, Oregon and some what new to Real Estate! my goal is to Get an FHA loan in order to acquire a SFR to House Hack. I had a conversation with a friend recently and a few questions were brought up about my plan that I wasn't to sure about. I listed them down below if anyone can answer these or has any other knowledge they can give me about house hacking that would be greatly appreciated!

1. Would there be anything stopping me from being able to rent out separate rooms on my property? (Laws, lenders)

2. Do I have to report Me House Hacking on my taxes or to my Lender? 

3. Do I get taxed on my cash flow from renting out my rooms? 

[Grant Schroeder]

@Tyler Yontz

Hi Tyler,

I have done two house hacks in Newberg, OR and am also a loan officer in the Portland Metro area.

1) There is nothing stopping you from renting out rooms on your property once you have purchased it. That is how I did my first house hack. I bought a townhouse and rented out the 3 bedrooms while I lived in the 4th room.

2&3) You do have to report the income on your tax return, but you are able to depreciate the house and write off certain expenses such as mortgage interest, property taxes, etc. So there are some benefits to reporting the income on your taxes. I am certainly not a CPA, and would recommend chatting with one shortly after you have purchased your property and started renting rooms. House hacking a single family home can get complicated with taxes, but a great resource to answer tax questions on House Hacking is @nataliekolodij. She is a CPA with her own practice, and specifically talked about this on BP Money Episode 112. She breaks it down really well for anyone to understand.

Let me know if I can be of help in any way! Keep asking great questions like these, you sound like you are on the right path.