Local Austin House Hackers

[Devin Dang]

Howdy!

I recently started a reel series "House Hacking in Austin" where I highlight my favorite (and objectively the best real estate investing strategy) house hacking to share different ways people are making it work in an increasingly expensive city.

Looking to connect with any and all house hackers in Austin!

Kicked off the first one with @Conner Olsen who is killing with mid-term rental/house hacking

[Juan Maldonado]

@Devin, I'm not sure how recent you want the deal to be or if you're looking for a serial house hacker, but my wife and I bought a duplex using the little-known FHA 203k Loan Program. This loan allows you to roll up most transaction fees and renovation costs and still be able to get in for as low as 3.5%. Several years ago in 2015, my wife and I purchased a duplex in Austin and still live on one side while renting out the other. The purchase price was $180k with a renovation cost of $70k. I would have to look through the HUD statement, but for the loan, we brought less than $12k to the closing table. After accounting for the neighbor's rent, our mortgage was around was like $750 or something. This could also be used for a 4 Plex as it is a residential product. Also in a market in Austin, more importantly for some folks struggling to meet the loan income requirements, the property's rental income counts, towards your personal income. So that really helps drive some of the Front End and Back End Debt to Income Ratios, allowing more folks to qualify.

There are some quirks to the FHA 203k Program I wish I knew and would love to share.

Juan