House hacking duplex question

[Matthew Rodriguez]

Hello all, I am a 24 year old realtor with a few deals under my belt and assistant property manager making just $14/hr full time and just getting started in the world of real estate. I’m currently reading Scott Trench’s book “Set for life” and has a lot of great ideas for living frugally and putting yourself in a strategic financial position. the book talks a lot about buying a duplex and house hacking. I live in Miami, FL.. there are simply no duplexes under $250k in any decent area that you won’t go outside and get shot instantly in. So how do you get around this and begin a house hack without having to move cities as my whole life is here. I have thought about buying a SFR and renting out the rooms.. that could be an option, but then living with strangers or even acquaintances can be a bit hairy. Any advice with how I should get stared and move out of my parents house? I do have some money in savings, perhaps not enough to go through a full closing on a property.. but since I do not pay rent I can save up a large sum pretty quickly. I typically save between $800-$1,200 per month. Any advice or criticism is much appreciated!

[Jonathan Holmes]

FHA loans only require 3.5% down. That would be less than 10 grand for a 250k property. You would probably know this better than I in your location, but in my area it is common to negotiate seller paying the closing costs. That will keep your initial investment even lower. With your ability to save I would even look at triplexes and quads. Depending on what they go for in your market with an FHA loan you may be able to save up the down payment in a couple years.

Also if it strikes your fancy consider the FHA renovation loans you might find a duplex in need of some work and be able to include the rehab in the loan.

Just make sure no matter what that your numbers work. You might be able able to pay more for a place you're going to live but you don't want to be stuck there after you're ready to move on.