house hacking, first time buyer

[Donald Wayne Hayes]

I've started the process of running the numbers on multifamily properties in my area for my first house hack. Since i will be doing a FHA load with 3.5% down i noticed most of the time the coc returns are negative with me living in one unit. This negative cash flow would be lower than rent would cost living somewhere else for me to consider the property. However, the coc return is pretty significant with me renting both units out (after one year and the purchase of another property). If the cash flow is negative with me staying in one unit, but offers significant cash flow and coc return once it's a full rental, is it worth considering. I am in no hurry to jump into anything, starting the process of finding an agent and a lender now.

[Matthew Kwan]

Are you fix on just a duplex over there? You can still qualify with FHA 3.5% up to 4 units which you could rent up to 3 units but also depending on the price point for a triplex or fourplexes. Also, if you are looking for more than 3 units, you would also need to consider the self sufficient test that FHA and you would need to past the test in order the qualify. As for rates, you can always consider to buydown the rate if you have sufficient cash OR consider 2-1 buydown rate then refi it out in the foreseeable future. These are just some things to consider about on your first deal!

@Carlos Valencia @Albert Bui