New. Very new.

[Lakendrick Payne]

Hello all. I currently reside in the state of Alabama and I am looking to become a REI. I have done a little reading and research but I am aware I need to do a whole lot more. House hacking has really caught my attention. Just wondering if any one had any guidance on how to start, maybe books I should read. Podcast, seminars. Anything would be helpful. I have been wanting to do this for a while and I am ready to pull the trigger. Thanks!

[Drew Sygit]

@Lakendrick Payne

1) Focus on 2-4 unit properties

2) Explore FHA 203(k) loan which requires only 3% down and allows rehab to be included in purchase mortgage amount. This will allow you to finance improvements when you buy - allowing you to buy properties that are NOT mortgageable, which will allow you to get a better purchase price.

3) Get pre-approved for both FHA 203(k) & regular FHA mortgages, so you can use either depending on the 2-4 unit property you find.

Your goal should be to improve and stabilize the property, so you can refinance out of the FHA loan to free it up to use it again (can only have one at any given time, unless extenuating circumstances).

NOTE: you have to owner-occupy for the first 12 months per the mortgage, before you can convert to 100% rental.

Would also recommend living as cheap as possible, while generating as much cashflow as possible:

1) Live in the basement if possible and rent out 100% of the units. Most cities will NOT let you rent out a basement without legal egress, but most do not care if the property owner lives in an unapproved basement.

2) If you live in a unit, rent out other bedrooms as MTR or STR.

3) Once renovations done, experiment with renting out a unit as MTR or STR. If successful, convert rest of units.

All this will give you a LOT of experience!