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Updated over 4 years ago on . Most recent reply

User Stats

27
Posts
15
Votes
James Baker
  • Property Manager
  • Pittsburgh, PA
15
Votes |
27
Posts

House Hacking isn’t Working??!

James Baker
  • Property Manager
  • Pittsburgh, PA
Posted

I live in a Triplex that I own on a portfolio loan that I put 20% down on.

My mortgage is $800 a month.

My insurance is $1200 a year.

I owe $95k on the property and it is worth $150,000.

Unit 1 rents for -$550

Unit 2 rents for -$650

Unit 3 (my unit will rent for -$700-$800)

My plan was to move out of this house into a Fourplex, then rent out my current unit- resulting in $800 plus cash flow out of the Triplex.

The sales price on the fourplex would be $220,000.

The fourplex is worth around $280,000. (It’s a failed short sale)

Each unit can rent anywhere from $800-$1100 a piece. That’s around $700-$1000 of cash flow a month WHILE living there.

So back to my plan.

The plan was to move out of my current triplex, rent out my unit, then get into the fourplex for a low down payment. Somewhere under 5%.

I thought I could do that since it was an owner occupied loan.

Unfortunately, I’ve called 4 residential lenders, who have all said it doesn’t matter about the equity or rental income, it only matters what my w2 income is.

I only make $70,000 a year on my w2, which is obviously not enough to finance two mortgages.

So I can’t even get pre qualified.

Then, I called 5 commercial lenders, and they all said I HAD to put 20% down or they won’t even talk to me.

I even tried to do a blanket loan.

Am I doing something wrong? Is there no way to get a low down payment while living in the fourplex?

It thought that was the whole point of house hacking?

Someone please help!

Most Popular Reply

User Stats

4,876
Posts
2,466
Votes
Jaysen Medhurst
  • Rental Property Investor
  • Greenwich, CT
2,466
Votes |
4,876
Posts
Jaysen Medhurst
  • Rental Property Investor
  • Greenwich, CT
Replied

Ring-a-ding-ding, @James Baker. It only takes one.

  • Jaysen Medhurst
  • Loading replies...