Considering House Hacking within the next year

[Ryan Blake]

Im looking to start my journey with a house hack. I am a Veteran, so I know I have access to a VA Loan (100% financed, a big plus).

I would like to know things to consider when House Hacking from local investors. (Fixed & Variable cost, P.M. or DIY)

I would have a little under $15k when ready but wondering should I tie it up as equity (to lower monthly payments) or keep it to invest in another possible property?

I will also do my best to make it to the Meet in Rocklin on Nov. 1st.

I'd love to network, maybe get into wholesaling to earn some cash to get into BRRRR and Short Term Rentals (AirBnB).

[Carrianne Mucho]

@Ryan Blake - 1.  Thank you for your service!  

2. VA loan is a great option for owner occupied AND you can even use it on a multi unit property as long as you live in one of them.

3. as far as "tying up" $15K in equity - that would only reduce your payment by around $70 a month. Without knowing more specifics of your situation, it is impossible for me to give accurate advice however here are some things to consider: As an investor, you want to get in the habit of having reserves (once you start purchasing non-owner occupied properties, you will need 6 months of PITI in your account after you make your down payment). If you are going to be relying on rent from boarders (one method of house hacking) - you want to make sure you are still comfortable if you had a "vacancy"or two for a few months. Even as a homeowner, it is a good idea to have at least 3-6 months of living expenses on hand. Or perhaps that money would be well used to improve a property that could use some updates? Depending on the project and how handy you are, you might gain more value with this method than simply putting more down on a turn key property.

If you haven't already, you should connect with a local lender to find out what your maximum payment qualifications are. This may help in answering your question as well. Example, I've had clients who qualify for a $300K home but find one they love for $310...this means with 100% financing, they'd need to come in with the extra 10K. You are welcome to message me or contact me directly if you have financing questions (VA, renovation, conventional, 203K). You will want to get pre-qualified anyway before looking at properties so both you and your Realtor know what your budget is.