Moving out of a House Hack

[Phillip Lewis]

I'm looking at potential duplex house hack deals and they make sense from a buy perspective as they will be cheaper than renting and really decrease expenses when a tenant is in place. My issue is trying to evaluate if it will still be a good deal if I decide to sell or want to refinance. My plan is to use an FHA loan (potentially an ARM) and would want to refinance into a conventional loan once I move out. What should I be considering to know when the right time to refinance would be or if a house hack would be a good deal?

[Nicholas Coulter]

@Phillip Lewis I would stay away from the ARM and instead do a 2-1 rate buy down with seller concessions. This allows you to have a 2% lower rate first year and 1% lower in year two. This will help your cashflow until you move out and ideally rates are lower in 2 years and you can refi then.