Newbie Looking to House Hack in So Cal

[Ciji McBride]

Hi Everyone! I'm finally ready to jump into real estate investing. I want to buy a duplex, triplex, or 4-plex and house hack (live in one unit for 18-24 months). I figure since I'm a first time buyer this would be the best way to get financing (I'm thinking I'd probably qualify for an FHA loan). I also have the added benefit of currently living with family, so if I find a deal in a not-so-great area I won't have to live in it full time while I fix it up (because an FHA loan requires the property be owner occupied for 2 years). I have a plan but I'm foreseeing a few obstacles: first, I have a home business so my income is stated. Secondly, my credit score isn't great. Last time I was pre-qualified was about 5 years ago, and that amount was $200K, but that was for a personal property, not an investment. Next, If I house hack, the property needs to be at least a 2-3 hour drive from Los Angeles. I'm not finding any suitable multi-family properties in So Cal under $200K. The average here seems to be $500K. I haven't really spoken to a broker or mortgage lender about my current situation because quite honestly I'm worried I'll get laughed out the office.

I know there's a deal out there for me or maybe even a better strategy than house hacking. I can continue living with family for the next year if I must, but I wanted to invest in something before the end of this year (2017).  I'm sure there's an angle or resource I'm missing. Can anyone offer me any advice? Is there a better why to go about it? If there's a better investment strategy I could use, please let me know.
 

Thanks in advance for your help.

[Kiersten Vance]

Hi Ciji!

No one should laugh you out of the office no matter what your situation is. It is the American dream to own a home! House hacking sounds like it could be a good option for you. Do you have 2 years of tax returns showing your income? This is what the lender will base your preapproval on. I have a good lender that has worked with a few of my clients under 200k. Do you have enough for 3.5% down? That will most likely be the minimum that you will need to put down. 2-3 hours is a long ways out of LA. Do yo need to be close to LA at all for work? There are definitely options for you out toward Yucca Valley, 29 palms, ect. Happy to help if you need!