Cleveland native back home and ready to house hack!

[Matt Fuerst]

Hello everyone. I was born and raised in Cleveland, Ohio and recently moved back to the Cleveland area after being away for 5 years.

I am 31, never owned a house before, and finally feel like I am ready to purchase my first house hack property. I would like to buy a duplex, triplex, or quadplex where I would definitely be living in one of the units while renting out the other(s).

Any advice on locations around the Cleveland area that would be hot for both living and investing with the live-in house hack strategy? I can work remotely. I know back in the day Lakewood, Ohio City, and Cleveland Heights were popular locations that have grown massively since I left and returned.

Also any advice on any banks to work with for any good deals or promotions? I heard about a good lending program for duplexes and multiplexes from a friend at Citizen Bank but curious if anyone else had any recommendations.

Still looking for a real estate agent.

Thank you in advance for your advice/wisdom!!

[Brittany Minocchi]

FHA is still an option with 3.5% down, and conventional guidelines just changed so you can buy a 2-4 unit property (as long as you're occupying a unit) with 5% down. Benefit to conventional over FHA is the PMI - it won't drop off of an FHA loan unless you put 10%+ down, and even then you're stuck with it for 11 years. You can request to remove it with conventional at 80% LTV, or it'll drop off automatically at 78%.

You will have to pass a self-sufficiency test for 3-4 units with FHA, meaning the rents from the property (including the one you'd be living in) have to cover 100% of the monthly payment. This can be tough. FHA is also pickier on the condition of the property. 

If you are currently living in Cleveland and can show the address on your driver's license, current lease agreement, bank statement, utility bill, etc you might qualify for a $5,000 grant since you're a FTHB. Eligibility is address specific. You could also get $500 towards your appraisal and $500 towards a home warranty if you wanted to buy one. Happy to answer any questions or chat - feel free to reach out!