House hacking in San Diego, CA.

[Kevin G.]

27M Married, wife’s 26, with a 1.5 year old baby. Currently renting in the Bay Area at $2750/mo. After electric, garbage, and everything else just the house rental is around $3200/mo (not including general expenses) all said and done.

I want to buy a duplex somewhere and live in one side and rent the other. Buy the property with an FHA loan (since I don't have a ton of cash, most is invested or in retirement accounts.) and then move out after the requested timeframe has lapsed that I need to live in the property.

My current lease I signed was an 18 month lease and we have still around 16 more months to go. I’m thinking with plenty of grinding and overtime I can try to save as much cash as possible and start this investing journey finally. For prices in CA I’m thinking I’m gonna need at least need $40k-$50k with a 3.5% down payment.

Me and my wife really love San Diego so house hacking may be an opportunity to get into the market, AND Be able to live there. The thing with San Diego as I realized is its very difficult to find deals especially on the multi family side, but maybe by the time i'm looking next year the market will be a little more in my favor for multi family units. I also have no problem finding a more run down property and maybe using a 203k loan instead to help renovate the property. 

Does anyone have any advice for me with this plan?

[Devin James]

Hey Kevin,

I would suggest you do exactly what your planning. Save as much as you can in the next 16 months and keep your eye on the market.

During that time you're saving, you can cold call or send mailers to a list of properties that fit the criteria for your house hack. With 16 months of consistent cold calling/mailing, you should find some potential owners that will be willing to sell by the time you're ready to buy. If an owner is looking to sell sooner than you're looking to buy, you can wholesale or find a partner with cash.

Also, I would suggest networking as much as possible. The more you put yourself out there, the more likely you'll find a deal or another opportunity that can help you in the future. 

A LOT can happen in 16 months, so just stay consistent & don't try to reinvent the wheel.

Good luck!!