Hardest parts of house hacking

[Daniel Sabato]

For anyone who has used an FHA Loan & The Owner Occupant route to get started with their first property, what were some of the more challenging parts of that process? Whether it be getting approved, finding tenants, cash-flowing positively, retaining tenants long-term, etc; Id love to hear some of the more challenging aspects of the process & things you'd do differently if you had to go back!

[Kevin S.]

@Daniel Sabato definitely the hardest part was finding a deal that had decent cash-flow. In a market like we've been in where multi-family properties are hot, FHA puts you at a bit of a disadvantage due to the requirement by HUD that the property be in move-in condition. Typically when an FHA inspection prior to close is done, at least one (if not more) items will come up that the seller has to fix before you close. This makes seller's less likely to go with someone using FHA versus cash/traditional mortgage. I had several properties I put bids on where they didn't accept my offer strictly because I was using FHA. You just have to be patient and find the right property/seller.