House Hack Opportunities? Expert Advice Needed

[Steven Nani]

Hello everyone,

I’ve been a BP member for a few months now and decided now was the right time to reach out for some advice. I’m currently living in Bethpage, New York with my parents and was looking to buy a property to house hack within the next 6-12 months. Being this will be my first purchase, I want to ensure I’m making the right moves and avoiding any expensive/regretful land mines. As you know, Long Island is extremely expensive and it feels like investment opportunities are hard to come by. I would greatly appreciate any and all advice as I hope this first purchase is a successful start to my real estate journey! 

Thank you,

Steven

[Elliot Shoener]

You need to make a decision if Real Estate is your gig.  If houses are expensive where you are, you may need to move to more a cheaper place.  As a young real estate person, I would find a home with as many bedrooms and with the best bedroom to bathroom ratio as possible. Meaning a 3/3 is better then a 3/2, but a 3/2 is better than a 2/2 given the price is similar.   You can put down a modest 3.5% to get into a home. Then rent out the other rooms. Allow those roomates to pay the mortgage.  This is not ideal. But if you live uncomfortable now, you'll live comfortable later.    Make sure you can afford the mortgage without roommates, but let the roommates pay the mortgage. Not being able to afford the mortgage is your landmine. If you mess up your credit you are done.   If you do this every 2-3 years, buying a house, rent out rooms, live in it while you save for next house, buy next house and rent first, repeat on second house etc. You'll wake up in 10 years very happy.