Encouraging my kid to Househack in Austin

Encouraging my kid to Househack in Austin

Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
So my oldest kid finished college in May, got some random job somewhere, and lives and works in Austin somewhere. She doesn't earn a ton, but she wisely moved in with some lady and rents a room in a house. Pretty sure she's paycheck to paycheck, but most of America is - not faulting the kid for that. She has said that she would like to find a way to buy a house - the implication being that maybe Daddy will help her (he won't). But then I got to thinking - maybe she could get to a point where she could qualify for something reasonable, maybe not in Austin but somewhere in the sticks outside of town. And she could house-hack. I can explain to her that she needs to be the lady renting the rooms out to other kids, not the kid renting the rooms from others. I will probably go see her in a few weeks, just to have lunch and visit. Figured I would drop off my copy of 'Set for Life' by one Mr. Scott Trench (anybody heard of that guy?) and just make a very strong suggestion to her that she really needs to read it. She'll need to figure out some way to save and get some reserves if she ever plans to qualify for a mortgage. Then what? Maybe she should learn to network with others that are into house hacking in the area? I keep thinking if I tell her, then whatever - it's background noise basically - but if some 27 year old tells her, then it will carry so much more weight. If my Austin friends have some good REI meetups that they might recommend for a young person just starting out, looking for house-hack, then by all means, please chime in. This thread is as much about talking to grown up kids about money (or anything else) as it is about house-hacking, so looking forward to useful and insightful responses.
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
6y

@Mark Sewell get her the HouseHacking book from @Craig Curelop too and maybe ask her what she would do if she had more money. The first year of househacking I certainly bought more rentals but I also bought a Ducati and went to Italy for two weeks with all my extra money

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    @Mark Sewell  Talk to her about budgeting and planning, what's involved in owning a home-the pros and cons and how mortgages work.  Starting young is good as is getting her to do it on her own.

  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    6y

    @Mark Sewell get her the HouseHacking book from @Craig Curelop too and maybe ask her what she would do if she had more money. The first year of househacking I certainly bought more rentals but I also bought a Ducati and went to Italy for two weeks with all my extra money

  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    @Mark Sewell Give her the book “Set for Life” by Scott Trench. If she won’t read it, she’s not ready for real estate ownership yet. If she will read it, it provides the blueprint for how to get started.

    Ryan Kelly Group - Keller Williams5112 Reviews
  • Real Estate Agent · Houston, TX · Member since 2019 · 240 posts · 155 votes
    6y

    Hi! I'm in a somewhat similar position as well. I'm attending college soon and would like to house hack instead of paying more per month for dorms. I think it is a great way for young people to begin creating wealth and experience, just make sure that she understands that purchasing a home to house hack is a wealth creation strategy. 

  • Real Estate Agent · Georgetown, TX · Member since 2016 · 169 posts · 107 votes
    6y

    @Mark Sewell Maybe suggest she check out this

    https://www.meetup.com/The-Real-Estate-InvestHER-Meetup-Austin-TX/

    specifically for women :-) There will be lots of other "27 year olds" there who will encourage her that it's a great plan!

  • Dan SheeksPro Member
    Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
    6y

    Hey Mark. I recently wrote an article for the Bigger Pockets blog that you may want to have your daughter read. It's aimed at teenagers and what they should do in order to start investing in real estate thru a house hack. It could help her understand her own path to REI. https://www.biggerpockets.com/blog/how-to-invest-in-real-estate-before-turning-21

  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    6y

    Hey great stuff here - thanks for all the thoughtful responses.
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    6y

    Be sure to provide other resources like a sample house or vendor list. I think it's unfair to assume everyone will dig into something the way we do. Saving this thread for my 2yo daughter ;)

  • Investor · Houston, TX · Member since 2017 · 34 posts · 29 votes
    6y

    So you want her to house hack but you won't help her? That's the wrong move. 

    "Pretty sure she's paycheck to paycheck, but most of America is - not faulting the kid for that."

    Isn't that completely your fault? Why would you ever let your daughter live paycheck to paycheck? I would never do that to my kids. Generational Wealth is a long-term mindset! Build up assets so your kids do not have to slave their years away like you had to. The portfolio of real estate you build today will not go to your grave but to the next generation. It gives the next generation an advantage. Wealth Inequality is increasing in the USA. It is much harder to buy real estate or any assets compare to 20 years ago. 

    Source: Graph by USAFacts & Data by Federal Reserve Survey of Consumer Finances

    My 2 cents to create Generational Wealth through Real Estate. 

    1) Be obsessed over Generational Wealth. I would see the real estate portfolio as a "family portfolio" not just real estate for you or her. You should help her step by step. 

    2) Make a PLAN with an end goal that includes you and her. Create tasks to accomplish. Do not focus on the outcome but what tasks must be done for the outcome (end goal). Such as study real estate 5 hours a week, call 100 sellers a week, analyze 25 deals a week, visit 5 properties a week, drive for dollars for 5 hours a week, flip one house every 3 months, etc...

    3) Read numerous books on real estate, self-development, business, and entrepreneurship. Take action while you read. I would make it a goal to read 1 book every 2 weeks? I highly recommend reading "Rich Dad Poor Dad" by Robert T. Kiyosaki. A good real estate book is "Finding and Funding Great Deals" by Anson Young. 

    4) Network Heavy. Start going to multiple real estate events until it becomes 2nd nature and enjoyable. Make it a goal to attend 1-2 real estate meetings every week. 

    5) Listen to Podcasts and Audiobook. Great resource while driving or exercising. You can listen to your favorite books but they will cost money! Podcasts are free and there are many goods ones. Just search what you are looking for such as "House hacking."

    6) EXERCISE. Do not take this lightly. I highly recommend 4-6 days a week of weight and cardio training. 

    7) SLEEP. Get the 7-9 hours of sleep your body naturally needs! 

    8) Accountability. Every week, you should have a 30 min call to be accountable not only for her actions but for yours too. Review goals and update if need to be.

  • Austin, TX · Member since 2012 · 34 posts · 14 votes
    6y

    @Mark Sewell I'm very happy you want to get your daughter to start house hacking. Would love to help anyway I can. 

    I bought my first house hack in Austin, TX at 24 and now fast forward to 29 I have house hacked multiple properties in the north Austin and suburbs area. I am a realtor too so pretty knowledgeable on the process and have helped a lot of house hackers in Austin.

    Set for Life is a great book and tell her to listen to my BiggerPockets podcast interview #352. Just came out a few months ago. I share a lot on how I got started.

    If she has any question, tell her to reach out or send me an email.

    - Diego

  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    6y
    Thanks Diego. I think I may have listened to your show, in fact. Thanks for reaching out. Sameer, you strike me as a life coach of some flavor. Good luck with your endeavors, whatever they might be.
  • Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    6y

    Get her pre-qualified to buy a house.... things get a lot more real at that point. From there she should get excited!

  • Investor · Beaumont, TX · Member since 2016 · 171 posts · 277 votes
    6y

    After a week at the corporate job, she'll realize that's not what she wants to do the next 40 years and she'll be motivated.

  • Member since 2018 · 40 posts · 24 votes
    6y
    Originally posted by @Sameer Bhalesha:

    So you want her to house hack but you won't help her? That's the wrong move. 

    "Pretty sure she's paycheck to paycheck, but most of America is - not faulting the kid for that."

    Isn't that completely your fault? Why would you ever let your daughter live paycheck to paycheck? I would never do that to my kids. Generational Wealth is a long-term mindset! Build up assets so your kids do not have to slave their years away like you had to. The portfolio of real estate you build today will not go to your grave but to the next generation. It gives the next generation an advantage. Wealth Inequality is increasing in the USA. It is much harder to buy real estate or any assets compare to 20 years ago. 

    Source: Graph by USAFacts & Data by Federal Reserve Survey of Consumer Finances

    My 2 cents to create Generational Wealth through Real Estate. 

    1) Be obsessed over Generational Wealth. I would see the real estate portfolio as a "family portfolio" not just real estate for you or her. You should help her step by step. 

    2) Make a PLAN with an end goal that includes you and her. Create tasks to accomplish. Do not focus on the outcome but what tasks must be done for the outcome (end goal). Such as study real estate 5 hours a week, call 100 sellers a week, analyze 25 deals a week, visit 5 properties a week, drive for dollars for 5 hours a week, flip one house every 3 months, etc...

    3) Read numerous books on real estate, self-development, business, and entrepreneurship. Take action while you read. I would make it a goal to read 1 book every 2 weeks? I highly recommend reading "Rich Dad Poor Dad" by Robert T. Kiyosaki. A good real estate book is "Finding and Funding Great Deals" by Anson Young. 

    4) Network Heavy. Start going to multiple real estate events until it becomes 2nd nature and enjoyable. Make it a goal to attend 1-2 real estate meetings every week. 

    5) Listen to Podcasts and Audiobook. Great resource while driving or exercising. You can listen to your favorite books but they will cost money! Podcasts are free and there are many goods ones. Just search what you are looking for such as "House hacking."

    6) EXERCISE. Do not take this lightly. I highly recommend 4-6 days a week of weight and cardio training. 

    7) SLEEP. Get the 7-9 hours of sleep your body naturally needs! 

    8) Accountability. Every week, you should have a 30 min call to be accountable not only for her actions but for yours too. Review goals and update if need to be.

    chill lol 

  • Member since 2019 · 62 posts · 23 votes
    6y

    I am a 27 year old. Have two house hacks. One in Austin and one in Dallas. Its one of the best thing i have done for myself. Cant wait to get my 3rd house hack! Definitely agree with @Danny Webber & what @Diego Corzo say. get pre-qualified first and then run numbers on all day until you find the one that makes sense! 

  • Investor · San Antonio, TX · Member since 2018 · 35 posts · 33 votes
    5y
    Originally posted by @Ronald Rohde:

    Be sure to provide other resources like a sample house or vendor list. I think it's unfair to assume everyone will dig into something the way we do. Saving this thread for my 2yo daughter ;)

    Haha that last part got me laughing a bit too hard at 1am 😂.. Way to plan ahead brother.

  • Realtor · San Antonio, TX · Member since 2017 · 64 posts · 35 votes
    5y

    Hi Mark, I started life after college as a social worker and struggled doing the paycheck to paycheck thing (I got a 35% pay increase when I went into teaching). I did a lot of side hustles to get down payment for an FHA loan and have house hacked 3 houses since. I wish I knew to do this sooner but am grateful I've at least gotten started on it now. I teach personal finances as part of my course to high school students. I'm in San Antonio so if you or your daughter have any questions or want to know anymore about the strategies I've used, I'm happy to connect and share. I bought all three houses with owner occupied financing then cash out refied (and side hustled) to get the next ones. Best of luck to you and your daughter!

  • Real Estate Agent · San Antonio, TX · Member since 2019 · 21 posts · 13 votes
    5y

    House hacking can be very difficult in Austin.  But it can be done especially if she has good friends that would want to rent from her.

  • Real Estate Agent · Seattle, WA · Member since 2019 · 301 posts · 188 votes
    5y

    Hey Mark, it's awesome you want your daughter to start house hacking. I lol'd at your "he won't" comment. I definitely agree that hearing it from one of her peers will carry more weight than from you. People tend not to be too receptive to logic bullying especially from their fathers even when it's completely valid advice. It means a lot when my parents are receptive to what I want, are a resource to me, and lead by example. But when they tell me to do something I don't react as positively lol. Seems like you got that figured out!

    I don't have any kids but I've found that people are most receptive to talking about house hacking when they start the conversation. They ask questions about what I'm doing and I simply answer their questions. They're a lot more interested that way than when I try shoving it down their throats. I wish I could talk about house hacking all the time but surprisingly most people don't feel that way. 

    Super interested to see how this goes for you Mark!

  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    5y

    Her birthday was yesterday.  She took her mom to brunch to meet her boyfriend, and (ahem) her boyfriends parents .  So I think we all know where this is headed, at this point.  House-hacking is probably not going to be interesting.

    BUT no matter the strategy, the discussion needs to be HOW does she afford the house, and not simply I cannot afford it.

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