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Updated over 4 years ago on . Most recent reply
House Hacking As An 18-year-old?
So I just turned 18 (about a month ago) and I want to move out and I've been looking at ways to support my own housing etc. I have a couple part time jobs and I've been working and saving my money up. I live in Southern California and the market is relatively on the higher side. Im looking into getting an FHA loan (signed or co-signed) from my father and I just wanted a second opinion. I already have a group of friends that are willing to move out and pay rent for a year and I've ran my numbers and everything and the monthly mortgage would cost anywhere from 2.8k-3.5k a month and I would have to split that amongst 4-5 people. My plan is to have them pay for the majority of the mortgage since they are living in a house that I would purchase.
So for instance, lets say the mortgage is $3400 flat and that split amongst 5 people would be $680 but I was thinking about raising the price per person to $750. 750x4(roommates excluding me)=$3000 leading me to only pay 400$ month compared to paying the full $3400 by myself. What do you guys think? Is this unethical to do? Is this a logical plan? I'm honestly really overwhelmed and lost. Any sort of response would be really helpful. Thank you.
Most Popular Reply
Originally posted by @Andy Pembleton:
I'm in the same situation as you brother,
My suggestion (If you're really serious about investing), would be to look into wholesaling or house flipping to start building up some capital and rapport first before tackling rentals. What I've found with the concept of flipping; you'll gain some insight to how all the functions of a house work and then when it comes time to be a landlord, then you know more of what you're getting aside from tenant screening.
Have you listened to any of the BP podcasts? Regardless, I highly recommend episode 371
Yeah I'm currently looking into wholesaling some properties near me to just build that initial capital (sorry should've included that in with the initial post) but I was just thinking for the future.