Trying to begin househacking.

[Felix Lilly]

I am looking to invest in real estate for myself. Currently I am 26 and am working in healthcare. I wand to begin creating equity for myself and building my real estate portfolio. I am wondering what my first properties should be for investing in. I work in Portland OR, and would like to find a property to invest in in the greater Portland area. Prices here are quite high, but I am wondering if perhaps I should invest in a one bedroom condo first using a 3% down payment. That way I can start building my equity and possibly find a roommate to help subsidize my mortgage payments. 

But again, the hardest part for me is getting started. That's why I am posting this today so I can find some answers and possibly make some in person connections with other real estate investors. Thank you for reading this posting, and thank you in advance for your time.

Felix Lilly 

[Paul V.]

My first investment 24 yrs ago was a condo with a low down payment.  It crated a lot of equity for me over the years without having to worry about maintaining the building.  My strategy was to bit the lowest prices unit in one of the most desirable neighborhoods.  Best wishes!

[Ryan Thomson]

@Felix Lilly I would connect with a house hacking realtor in your area to get started. 

Next I would start getting educated with a balance of starting to take action. When I started house hacking in Colorado Springs I found it super helpful to have a good realtor who understood what I was trying to do. 

[Ryan Thomson]

Also @Felix Lilly  Here are some resources I found really helpful on my journey:

1. For podcasts I really like the House Hacking episodes on Bigger Pockets Podcast and other channels. Here is a playlist with the best House Hacking Podcasts I’ve found: https://open.spotify.com/playl...

2. Great beginners guide: https://www.biggerpockets.com/...

3. The Book on House Hacking Strategies by Bigger Pockets is also a fantastic book

4. Happy to talk if you want more advice

5. Connect with a realtor who understands house hacking and has invested themselves

6. Connect with a lender to see what you qualify for and how you can improve that situation

7. Go to local Real Estate meetups and learn from people there

@Felix Lillyundefined

[Matthew Kwan]

HI Felix, happy to hear that you're hunting your first house hack! There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. Happy to connect and assist you in your real estate investing journey.@Albert Bui @Carlos

[Melissa Hartvigsen]

Quote from @Felix Lilly:

I am looking to invest in real estate for myself. Currently I am 26 and am working in healthcare. I wand to begin creating equity for myself and building my real estate portfolio. I am wondering what my first properties should be for investing in. I work in Portland OR, and would like to find a property to invest in in the greater Portland area. Prices here are quite high, but I am wondering if perhaps I should invest in a one bedroom condo first using a 3% down payment. That way I can start building my equity and possibly find a roommate to help subsidize my mortgage payments. 

But again, the hardest part for me is getting started. That's why I am posting this today so I can find some answers and possibly make some in person connections with other real estate investors. Thank you for reading this posting, and thank you in advance for your time.

Felix Lilly 

Hello Felix,

You are off to an awesome start! I built my portfolio here in the Portland Metro area by house hacking, my first two purchases were condos. I held onto them for several years, and used the equity in them to trade up to properties with more units and a higher value. It increased my cash flow.

Here in Portland, it is pretty hard to cash flow on a house hack for the first few years, especially with current interest rates. It may be worth considering a two bedroom if you can afford the payments. Then you can take on a roommate and reduce your mortgage while you are there. That strategy will help you save for your next down payment.

On my first condo I paid about $100 a month to the mortgage the first year it was a rental. I was okay with that because eight years later I had over $180,000 in equity to get my next property.  It is important to remember that the hack is your down payment savings. If you were a strict investor, you would have a higher interest rate and would have to put 15% down on a condo.

We have some amazing first time Home Buyer programs in Oregon Bond (has an option for a below market interest rate, or money for closing costs), Flex up to 5% for down payment or closing costs. I can connect you with lenders who offer those programs if you send me a private
message.

The other benefit of connecting with a lender is that you will know what loan programs are available to you, and what your payments will look like.

I am happy to chat more about my local experience if you are interested.

Cheers,
Melissa

[Dave Skow]

@Felix Lilly- thanks ....your best bet will be to buy your 1st proeprty to be your primary residence and then improve it / rent it and move to another property ....putting min down and wanting it to positve cash flow in Portland OR area will be hard / impossible ....maybe go into the outskirts ....a 1 bd condo with a paying roomate doesnt make sense ....try to find a house versus a condo so you arent burdened by dues and also a HOA...get pre approved so you can make sure you are able to get a loan when and if one is needed

[Hamp Lee III]

House hack using the Neighborhood Assistance Corporation of America (NACA) loan program.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

I wish you all the best.

[Khalid Haynes]

Quote from @Hamp Lee III:

House hack using the Neighborhood Assistance Corporation of America (NACA) loan program.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

I wish you all the best.

 This sounds interesting I'm going to look into this myself. I'm looking to house hack. 

[Mazou Lengani]

Quote from @Hamp Lee III:

House hack using the Neighborhood Assistance Corporation of America (NACA) loan program.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

I wish you all the best.

 Hello Hamp, I would like to know about this program

[Felix Lilly]

Quote from @Khalid Haynes:

Quote from @Hamp Lee III:

House hack using the Neighborhood Assistance Corporation of America (NACA) loan program.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

I wish you all the best.

 This sounds interesting I'm going to look into this myself. I'm looking to house hack. 

 Yes please, I would like to know more about this program as well. Thank you.

[Irving Casas]

@Felix Lilly

Buying ANY property is a great way to use the equity to save for a large down payment. However, I'm not a fan of condos because they take longer to sale and a special assessment could eat up your equity. An owner of a condo has little say on who performs the work needed, making the cost unpredictable. In contrast if owned a duplex or SFH and the home needs a new roof you can get quotes. I urge you buy a small multifamily such as a duplex. If you owned a SFH and a Duplex that are both 1,600 sq/ft the cost of replacing the siding would be the same (since siding is charged by sq/ft). In the meantime, while you own the duplex your mortgage is being subsidized by your tenant.