My Experience with a The Househack

[Chris G.]

My story of a house hack with roommates... Before finding Bigger Pockets

It all began with a new job a few hours from where I lived with my family in Glendora, CA. I got sick of spending 4 hours a day, without traffic, in the car. I had a few options. Rent a place closer to work and give my money away. Stay with my family and save. Or buy a house closer to work and rent the rooms to some of the people I work with.

I finally landed on a house in a great area, for what is great, in Victorville, CA. It was close to work. It was safe. It was quiet. Before I bought the place I already had the roommates lined up. Leases signed I had 2 of the 4 bedrooms rented, leaving one open and claiming the master for myself. 

The numbers: Purchase price was $197,000. Using the FHA I put little down. Mortgage was $1300. Rooms were rented at $650 a month each and that included all utilities which have averaged about $400 a month. All in all it doesnt cash flow but I have a master bedroom in a house in California that I only pay utilities for.

The Lessons: In the original hunt for a house we came across a huge 2 story 4 bedrooms 3 bath house that needed some cosmetic work. Looking back at it after the years of knowledge, that would have been the house to buy. Forced appreciation and I could have refi-d into a loan shortly after purchase and dropped that evil leach PMI. With a larger layout I would have been more comfortable with renting out all the bedrooms as the roommates now have a small bathroom to share. But it is what it is.

The Future: My girlfriend and I now have a plan to get out of the master bedroom we have now. In the short term, depending on job and market, we plan to move out, FHA another property and rent the rooms in the same manner as before. If we free up the master bedroom in the house and drop some of the utilities on the tenants it will easily be a cash flowing property.

In all it has been an amazing life experience. Buying a house, dealing with being a landlord, separating landlord and roommate relationships and seeing in the moment how no one will treat your property how you want. With the knowledge of BiggerPockets at my fingertips I am ready for more!

[Anthony Angotti]

@Chris G. the best thing is that you got started and started the 2 years Landlording experience clock! Once you hit that most banks will count your rental income as income towards the loan. 

That was one of the best parts of buying my first house as a house hacking situation. 

Keep on going and congratulations!