House Hacking at 20?

Question

I came across a 4 plex on Zillow. It was listed a couple months ago then it was taken off, now it’s listed there again (about 3 days now). It has been my dream to get started in real estate investing with a 4 plex so I could house hack it.

This 4 plex is around a ton of other 4 plex’s and they’re not luxury by any means. They’re all near a large military base that gets a lot of people renting around that area.

This deal is listed at 200k. And I ran the numbers and they look pretty solid. I could possibly cash flow while living in it (live for free for sure). Once I move out, I would cash flow $500-$700 per month maybe more.

The questions is, I don’t have a job (current college student), but I will get one soon. Along with my fiancé getting a full time government job soon (5 months). That’s the thing, if I wait, the deal might be gone. So how can I go about purchasing this property with no money? Can I get an FHA loan with borrowed hard money? Should I just use hard money and put 20% down? I really want to utilize the FHA because you can only use that once and the sooner you use it to invest the better.  I haven’t asked the owner about owner financing yet either.

Also, is now a bad time to invest with this pandemic still going on? Would waiting be more beneficial?

What are your thoughts?

Josiah Harp · Answer

@Josiah Patrick Zebarth haha, I like your name too! :D but yeah, that is a good idea. I think I’m going to contact a local investor I know and see what he says about it all. It’ll be my first time talking to him, but my parents know him. I’ll be interested to see what he says because he has around 50 units in the area so he knows our area pretty well.

Joe Aiola · Answer

@Josiah Harp Hey Josiah! Love the hustle while still in college. Why don't you look to get a partner? Find somebody who is able to get the loan for you, but then you manage the property. A partner probably won't want you living for free, though. You can get a part-time gig at night just to pay some rent while you're living there.

Just throwing out some ideas but my point is to get creative! If it's truly a deal then find a way to make it work.

Best of luck!

Just throwing out some ideas but my point is to get creative! If it's truly a deal then find a way to make it work.

Best of luck!

Tommy Adeoye · Answer

I may not be the best person to answer this question but i can offer my .20c . Get a co-signer - Mom, Pop, Brother, Friend(yes,I spent 5 years as a loan officer and I've seen many friends co-signed) .

Alternatively, check the network section for Investors to whole sale to.

A brute-force way - come up with a killer marketing pitch, collect Real Estate Investor leads and cold call as many as you can - I wonder what the conversion rate will be for 50-100 calls/day , Majority of them are isolated anyway and want to kill time. Ultimately, If I were you with a deal like that, I will schedule an appointment and if you act like someone who is going own that property, You never know - "The gods of attraction" may just be in your favor.

Josiah Harp · Answer

@Alex Zipeto thank you for the advice! I’m currently interviewing for some jobs right now. And exploring my options for how I can bring a partner on.

Josiah Harp · Answer

@Nick Rutkowski yes, bringing on a partner is a great idea. One of my only options at this point really.

Josiah Harp · Answer

@Nick Prahalis thank you for the advice! It’s encouraging to hear other people that are in the same shoes as me and what they’re doing despite the challenges.

Alex Zipeto · Answer

@Josiah Harp

Would you have the downpayment? I brought the downpayment and was lucky to have my dad co-sign.

If I were you I would get a job, any job, as soon as possible. Start saving and showing income.

There will always be another good deal just like this when you are ready to buy.

I would definitely agree to look for other sources for the downpayment but then remember that you will have to pay this back... and it will come out of your cash flow so you will be paying out of pocket each month.

Nick Rutkowski · Answer

@Josiah Harp

Ask Mom and Dad, your aunts and uncles, your best friend and their parents for capital. Have someone with a high income co-sign with you. Then buy the property.  Granted, whoever gives you money, cut them in.

Nick Prahalis · Answer

Great post @Josiah Harp. I'm also in college and have asked my self how to overcome the same hurdle you have in regards to getting a loan without having a job. I am new to new real estate investing so I don't really have any other advice besides what was already mentioned. There's an app called Meetup that I like to use for looking for new networking groups. Sorry that I don't have much advice, I just thought your article was relatable. Keep up the great work with finding deals that cashflow. That's awesome.

Josiah Patrick Zebarth · Answer

@Josiah Harp

Hey, Josiah!

(Nice name by the way :)

You have a really good problem right now, it seems like you got a killer deal set if you want to take it, or you could simply wholesale and collect a handsome assignment fee. I would highly encourage you not to just let the deal go, it seems like a great opportunity to make some early cash to motivate you further. Maybe offer it up on BP as a deal opportunity? And most likely to or three investors will at least be interested. Overall, way to be finding properties, and getting out there!

Best,

Josiah

House Hacking at 20?

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