First Time House Hacking

[Josh Deever]

Hey BP Forums,

I'm 20 years old and looking to purchase my first rental property and house hack it while I'm finishing my last year in college. Right now I'm still living with my parents in East Texas and plan to graduate with a degree in finance in December. I have a little over 20k in savings so I am planning on using an FHA loan with 3.5-4% down if I can for a primary residence and still have some savings left over. I also have about 7k in my Roth IRA that I may liquidate to get a better return on my money with real estate instead of the stock market. My goal is to eventually move to Dallas or Orlando and work for an investment/wealth management firm soon after I graduate. Should I use house hacking as a strategy for a first investment or is there another alternative I could use so that I can stay with my parents and rent out all the rooms?

[Josh Deever]

Quote from @Belen Gamarra:

Quote from @Josh Deever:

Hey BP Forums,

I'm 20 years old and looking to purchase my first rental property and house hack it while I'm finishing my last year in college. Right now I'm still living with my parents in East Texas and plan to graduate with a degree in finance in December. I have a little over 20k in savings so I am planning on using an FHA loan with 3.5-4% down if I can for a primary residence and still have some savings left over. I also have about 7k in my Roth IRA that I may liquidate to get a better return on my money with real estate instead of the stock market. My goal is to eventually move to Dallas or Orlando and work for an investment/wealth management firm soon after I graduate. Should I use house hacking as a strategy for a first investment or is there another alternative I could use so that I can stay with my parents and rent out all the rooms?

 Hey Josh, Have you managed to buy your first property yet?

 Hey Belen,

Not yet, I’ve decided to work on graduating first since I only have a few months left and then I will focus more energy on looking for a property. I’ve spoken to a few property managers and real estate agents that are willing to help out with locating a solid investment property when the time comes. Also once I graduate and end up with a full time job I should have more income to save for expenditures down the line and a down payment. Hopefully interest rates will come down just a bit as well but house hacking is still the plan. Thanks for checking in!