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Updated almost 5 years ago,
Orem, Utah House Hack
I'm a single guy working in Orem, Utah and I'm looking to make my first move into RE investing by house hacking and living with my brother and some friends. The only problem is, in both Provo and Orem, there is a law that says only 3 people or 1 family can live in a single family home and I was hoping to move in 4-6 people into a SFH after rehabbing and refinancing (BRRRR method) to be able to maximize how much money I could bring in while keeping costs competitive. Otherwise, I probably won't be able to get enough rent money to cover my expenses or even come close (I expect expenses like mortgage, PITI, etc. to be at least $2100 / month on a $300K house, but I'm a beginner so I may be wrong).
Apparently it can also take a year or more to get your house officially zoned as a duplex and can cost a lot of money in paperwork and attorney fees to get it done. This would end up defeating the purpose of a house hack as it would cost a ton and bring many hours of work. My end goal is to live in the house for a while (1 year plus) and then move it out and keep it as a rental (or sell it if that makes more sense) for a while.
Here's my question, how can I make a house hack successful in Orem (or Provo) when the laws won't let me get more than 2 other people in the house with me? Are there any other people here who are house hacking in the area? the reason I don't want to go outside orem and provo is because it becomes significantly more difficult to find quality renters that I would actually live with outside of the college towns (I'm young enough to still have most of my friends in school).
At this point, I'm considering scrapping the plan altogether and saving up cash to just buy a duplex later even though I have gotten everything ready to move forward if these laws weren't in place. Also, I'm a newbie so if any of this is based on my false understandings or assumptions, please point that out!