First HouseHack Done! Next Step Questions...

[Lamont Glover II]

About two years ago my wife and I were able to acquire a duplex in Indianapolis. Great area also meets the 1% rule once we are able to rent the side we currently live in.

There were some things that we did wrong which put us in a little bit of a financial hole... but we were able to climb out of that pretty quickly & now have a decent amount in our savings.

This may be just me getting antsy, but just need a little bit of clarity and some financial input on what our next steps should look like. i’m a planner and need somewhere to “shoot at” to stay motivated.

We’d like to get another house hack as soon as possible but not sure when we should pull the trigger on that. Not sure how much to save for reserves, rental repairs & things like that...

Here’s a brief rundown on our current $$

-Our expenses (including our mortgage) is would be around $2,600

-Monthly debt is only about 150 bucks aside from current mortgage. All other debts have been paid, which is good.

-We’d like to find a HH around the same price as our last one: 3.5% down would be around 6k.

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Ive heard some talk about using a HELOC for reserves? Not really sure about how that works or if it's even wise. It May be a "case by case" thing... but it could potentially speed up the process for us?

Would just love to hear any of your thoughts!

[Derrick Dill]

It seems you want to use FHA again, you'll have to refinance out of your current FHA to do that. Having 20%+ in equity will eliminate your PMI simultaneously. Can use your retirement accounts as reserves