House Hacking in South Florida?

[Cedric Dadaille]

I've been playing with the idea of House Hacking in South Florida. Haven't really delved into the subject of house hacking too much. I wanted to know if other people in the area have done it, and if there are any major pitfalls that I should watch for when House Hacking?

[Miguel "Mike" Perez]

Seems perfectly doable and after looking around in south FL I have gathered most people are already into it.

The simplest house hacking method is to buy a property with 2-4 units, live in one and rent the others.

Up to 4 units is still considered a non-commercial property.

This let's you put down 20% on conventional loans and 3.5% on FHA loans.

That's the golden ticket for house hacking.

Buy a 4 unit using 3.5% down, live in one (cheapest one), rent the other 3. It should be easy to cover mortgage and maybe even some cash flow.

Even 20% on a conventional should work with more of your money into the property.

The other type of house hacking you have to be more careful with is what I have seen done over and over again in south FL.

You buy a single family with a 3/2 config, then you divided it up into a 2/1 and a 1/1. Or a 2/1 and an efficiency.

Without proper permitting, it is illegal although many people do it. 

Many people don't get caught, but when they get caught the fines and liens start coming from the municipality.

After trying some shortcuts (low cost fence project thankfully), I have learned that if it's worth doing, do it right and legally.  It will save you from headaches (losing time and money) in the future.