Tell me why I SHOULDN'T househack a quad on my first deal

[Bridger L Logan]

Hello y'all,

I'm 24 y/o and I currently work as a project engineer in the San Diego area. The project I'm working on will last about a year. I'm going to save at least $25k during this project then go to Phoenix, AZ to get my first deal. My plan is to find a quadplex and househack it to have small or no housing expenses (cashflow while living there would be ok too of course). I would try and finance it with a 3.5% down FHA. I have been obsessed with BP and REI for about two years now and feel I have equipped myself with the basic knowledge and tools to do my first deal. I am feeling summer 2021 will be the time to actually pull the trigger. I have began my search of agents in the area to help me understand the Phoenix market better.

Tell me all the reasons why I shouldn't do this!! Because to me it seems like a good idea. 

Any advice from RE vets or newbies like me would be greatly appreciated!!

[Daniel Haberkost]

@Bridger L Logan one of the most common mistakes I’ve seen when people start with a house hack is often the entire reason someone starts with this strategy, which is that they have no (very little) money.

Make sure you have a chunk of cash separate from your down payment in case:

1.) You can’t find tenants right away

2.) You inherit bad tenants and have to evict one or multiple.

3.) A boiler immediately breaks and costs you $10k (this is a real example from a friend of mine)

Etc.

Ive been house hacking for years and it’s a phenomenal strategy if you plan/prepare properly. Just don’t over extend yourself financially, screen your tenants hard and don’t let the property fall into disrepair.