House Hacking Question

[Sean Buchner]

Hi yall, I am a college student studying civil engineering, I have a job lined up for after school but I still have one more year of school after this year. I am thinking why not but a 4 bedroom house and live in it next year and get a 3.5% FHA loan. In the house market where I go to school (Buffalo NY) homes are posted for 100-140k, if I can find a good deal and say get a 125k house for 100k then I would pay 3.5k down + 3k closing costs. I would then be able to rent out the other 3 rooms right? I know you can do this with multi families but not sure if I can still rent out rooms in a single family with a FHA loan? *NOT SURE WHY IT WENT TO ALL CAPS BUT I CANT STOP IT* LOOKING TO THE FUTURE AFTER THE YEAR OF ME LIVING IN THE HOUSE FOR THE YEAR WHAT SHOULD I DO WHEN I MOVE BACK HOME AFTER GRADUATION AND NEED TO GET OUT OF THE FHA LOAN? IF I CAN ”FORCE APPRECIATION” WOULD I GET A STANDARD LOAN TO PAY OFF THE FHA LOAN AND THEN I CAN RENT OUT THE 4 ROOMS? THANK YOU

[Megan Phillips]

You can rent rooms in a single family home, has nothing to do with your mortgage. 

After you graduate you can refinance into a conventional loan, rent all four rooms, or sell it. If you refi out of FHA, it allows you to use the low down payment option again for another purchase.

If there is a college student market there, you can generally make more than normal leases by renting rooms individually. If you could regularly rent the house for 1200 a month to a family, you can rent the same house for 2k a month ($500/room) to 4 college students.