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Updated about 5 years ago on . Most recent reply
Baby steps towards a house hack
Hello, I'm a new hopeful investor and a recent college graduate. I'm looking to start a house hack in Northern Virginia and commute in to DC, right now I take the train so I can be very flexible with where I live thanks to busing, trains, and the metro.
I'm in the process of saving for a down payment and as of right now I have cash reserves to cover a $250,000 3.5% down payment. From the communities I'm looking at the homes are selling in thr $300k range and just in to $400k. I'm looking for guidance, advice, and additional resources on the next steps to starting my first house hack. I'm working my way through Curelop's book, which is how I found this community. The biggest concern on my mind is the process of finding tenants. I understand that this is far down the line of something I'll need to take care of, but a big fear of mine is drowning in a mortgage while failing to find tenants.
A few general questions I have are:
1. Let's say I reach my goal down payment, now what?
2. What can I be doing besides browsing redfin as I save up for a down payment?
A local related question I have is:
1. I understand that Virginia has laws against unrelated tenants leasing under the same roof. Does this mean that my house hack is capped at 4 bedrooms (for four unrelated tenants)?
Thanks for taking the time to read this.
Most Popular Reply

Hi Grant! It sounds like you're doing everything right. Here are my responses to your questions, based on my experience:
1. Another alternative plan would be to buy a smaller place just for you, live there for a year, then move on and rent it. I had a client buy a $175k 1bd/1ba condo near Mosaic District. He'll save up for a year or so, move on, and rent out this place with the benefit of having it on a primary resident mortgage loan. Pros: not having to live with others, buy with what you have now. Cons: you may prefer living in something bigger.
2. BEFORE you reach your goal down payment, create a relationship with a Lender and Realtor.
The lender can take a look at your financial situation, and recommend actions that can boost your credit (if needed). You need a minimum credit score to qualify for a FTH 3.5% down loan, if you're not there yet, working with a lender early can help you get there.
A Realtor can create a custom search for you in MLS that is so much better than you browsing Redfin. You can get emails with promising listings customized to a search created just for you. I recently recorded a YouTube video about this- I'll PM you a link.
3. Legally, yes you would be capped at 4 unrelated tenants. I'd note that if capital appreciation is a goal for you, historically in NOVA lowered priced (and smaller properties) such as condos and townhouses will appreciate at a faster rate. So this cap may be irrelevant for you.