Mount Vernon, OH · Member since 2017 · 12 posts · 3 votes
HI, I have a thousand saved up. I really want to get out of living in a room rental. Im throwing money away each month by renting from someone else. I want to get to a place where I can house hack and save more faster to invest in other houses. I found a house that is walking distance to a college. I plan to use a no money down purchase through my bank. calculating the costs, If I rent each room out, I could net about $500 a month. However the house is selling at the average going rate for houses, and the market is most likely to remain stable. My question is, would I be able to purchase other houses while I have this one, and what are your views on the way I'm going about this. what could I change?
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
8y
I think the strategy you are referring to is househacking which if you are new to BP, is one of the most commonly talked about ways to get started in REI. I think it’s an awesome way to start, but I would be weary of “no money down” strategies with a bank. Are you referring to low money down? Because FHA loans require as little as 3.5% down which I would recommend saving up, have a couple grand for down payment and reserves and pull the trigger. If you are comfortable living and investing in the market and renting to roommates than go for it.
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Mark Gonzalez This is a great way to get started, and it's exactly what I did back in 2003. I had virtually no money, and banks were still doing 100% financing. I lived near a college, so the roommate pool was plentiful. That being said, be careful that you keep a little money in reserves in case something needs a repair. Also, yes, you will be able to buy another house while having a loan for this one. Your debt to income ratios will need to be low enough to qualify.