House Hack - SoCal -Corona, RIverside, Ontario, Irvine,etc -

[Justin Haughton]

Hey BP fam - new investor here, looking to do a house hack in the inland empire. Trying to get something together by March of next year - under 1MM, ideally 3-4 plex, seller financing preferred. I know CA has stipulations on what rent moratoriums - that can make things sticky if with bad tenants.

What would be 3 things to keep in mind as I pursue this venture? Insights regarding location? I'm flexible with anything around 1hr outside of LA.

More about me:

I want to create a situation where my wife and I don't have to pay rent/mortgage. My net cash flow sits in the mid 3000's right now. This will be my first real estate purchase - I may look into some first-time homebuyer programs. In Brandon Turner's books, I learned about the 203b loan as an option. I have no debt. Savings 20k. Also may be interested in some Hard Money BRRRR options - still learning.

Has anybody done something like this before and can give some insights?

My very best,

Justin

[Erik Estrada]

Quote from @Justin Haughton:

Hey BP fam - new investor here, looking to do a house hack in the inland empire. Trying to get something together by March of next year - under 1MM, ideally 3-4 plex, seller financing preferred. I know CA has stipulations on what rent moratoriums - that can make things sticky if with bad tenants.

What would be 3 things to keep in mind as I pursue this venture? Insights regarding location? I'm flexible with anything around 1hr outside of LA.

More about me:

I want to create a situation where my wife and I don't have to pay rent/mortgage. My net cash flow sits in the mid 3000's right now. This will be my first real estate purchase - I may look into some first-time homebuyer programs. In Brandon Turner's books, I learned about the 203b loan as an option. I have no debt. Savings 20k. Also may be interested in some Hard Money BRRRR options - still learning.

Has anybody done something like this before and can give some insights?

My very best,

Justin

You can do 3.5% on an FHA loan, but be aware of the self sufficiency test on 3-4 units. Meaning, all 2 or 3 units besides the one you are living in must debt cover the full mortgage payment and cashflow (just by a tad bit).

Hard money loans won't work on owner occupied residences, some are okay with primary residences but the terms aren't favorable. 

Conventional loans will work but you will need at least 15% down on any 3-4 units.