House Hacking & Then Repeating Multiple Times

[Jason Jones]

All - I see the threads on house hacking, there are many.  One aspect I'm not seeing in them however (that I can see readily) is moving out of the house hack property after 1 year and repeating that multiple times.  One place after the next place after the next.  Have folks found a bit of success in using this route?

I recently moved and the new mortgage I checked it has the "standard" language about intending to live at this property for 1 year.  The interest rate I got was lower because it was sold as an Owner occupied mortgage, I would get to keep that lower rate mortgage if I moved out at say 18 months right, the bank wouldn't want to raise it?  I'd have to change insurance type over to fire/shell I know that.

Could a person just keep moving after 12 months, renting out the old place, and buying a new place to Owner occupy? Until probably they hit their limit of what the banks would allow for their DTI debt to income limit and the bank wouldn't want to give them another mortgage as the debt would be too high as compared to the W2 job income?

Thanks!

[Corey Hawkinson]

@Jason Jones This is a great plan and many investors do this. You can get the mortgage for the second purchase with less than 20% down. Conventional with PMI is just one example. I'm not a lender so I'm not an expert on that but I can give you contact info for a few in the Twin Cities that I would recommend.

I built up to where I am through this process, although I was not as motivated as you to do this every year. In hindsight, I wish I was.

I bought a condo that I lived in for 5 years. Then bought a house to live in. I kept the condo. I later bought a different house and kept the previous house.

It worked out very well for me. Through two 1031 exchanges (including another condo that was always a rental) I have now sold the condo and house to purchase a 4 unit property and a 6 unit property. All of the properties mentioned are in the greater Twin Cities area. (Newport, Farmington, Bloomington and South St Paul)