Multifamily House Hacking in San Diego

[Bryce Baker]

Hello San Diegans! About a month ago I learned about this site and have been self-educating like a mad man about REI. This is my first time dipping my toes in the forums :)

I am 25 with a lifestyle that perfectly aligns with purchasing a MFP and house hacking. It's a no brainer for me to implement at this time in my life. Property management is my day job so fixing the property up, renting it, and managing it are aspects of house hacking that excite me even more about it!

My capital available to invest is not significant; however, I believe that if I presented family and good family friends with my goals and brought them deals that made sense I could raise the capital needed to secure my first property. I definitely have a lot of man hours to invest in analyzing and understanding deals before I begin making serious offers.

My question is this--am I being naive in considering an owner-occupied MFP in San Diego (most likely central, within a 10 mile radius of the highway 5/8 junction) as my first REI? I know SoCal can be cutthroat, but I love this city and would prefer to continue living here through my 20s at least.

All feedback and advice will be much appreciated!

[Jerry Padilla]

@Bryce Baker

@Kevin Fox has the best advice in your local market. If you are investing you would have to go in as equal partners as you can't "borrow money" for the down payment with conventional. For a primary residence you can get low down payments with FHA financing - but the numbers would have to work out for the property to qualify for a 3-4 unit house. A 2 Family guidelines are not as strict. Here are the additional requirements;

Reserve Requirements

• 3-4 Unit owner occupied properties must have 3 months PITI

Three (3)- and Four (4)-Unit Property

The maximum mortgage amount for 3-4 unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status. This is also taking into consideration, a 25% vacancy factor.