1st potential hack, advise requested:

[Jeremy Marquez]

I want to buy my 1st property and house hack it, preferably a 3 or 4 unit in Sacramento. 

There are many 2,3, & 4 units. 

Advice from those that have experience with hacking successfully or otherwise...

How did you finance the acquisition?

Did you wait until the perfect 1, or just 1 that came up that would work?

Are your rents covering your mortgage?

How did you fill the units? Traditional rent, str, family, friends?

ANy other pointers or tips are welcomed...

I am thinking I come in cash and private, then add a little sweat equity then refi within 6 months of acquisition.

I am thinking private and cash as I don't think I qualify, if you do loans maybe you can advise here, for FHA due to self-employment, not having 2 years of w-2, and other reasons.

When I refinance out of the private loan(s) it will be with a guarantor (Mom or sis)... Mom is part of the business...

I plan to rent a unit to sis & mom if they need it...

Thanks

[Christian Ehlers]

Hey @Jeremy Marquez, lots of great questions here!

1. If you are house hacking then you really can't beat an FHA loan for acquisition as you can get better rates than conventional financing and you only have to put down 3.5% of the purchase price for down payment. This boosts the Return On Investment a ton!

2. Since you are also going to be living in the property its also important to not hate where you are living, so there's probably no "perfect property" but once you find one that meets decent numbers and you wouldn't mind living in I would pull the trigger as that's the most important part, getting started!

3. In my area when househacking you can usually cover the mortgage, or get close, with the rents from the other units but there will usually be expenses like utilities and maintenance that make it not cashflow as well while living there. If you are paying rent now remember that at least with house hacking even if it costs you a little to live there you are still in a far better financial position compared to renting!

4. If you are in an area where STR is popular I would recommend this if you have the time to do it. The cashflow is typically much higher and that can make you feel much better about your investment and can provide more room for error.

5. Before ruling out FHA financing just have that conversation with a lender to know for sure. If not then private financing like you mentioned would likely be your best bet if you want to BRRRR the property.

Hope this helps!