House hacking at 22 - What I regret...

[Jake Andronico]

I purchased my 1st home at 22 years old straight out of college. 

PP: Aug. 2019 - $356,900 w/ 20% down (borrowed a large chunk of the down payment). 

Refinance: Nov. 2021 - Property appraised for 480K, I completely paid off my second, and the interest rate went from 4.25% to 3.25%

Rents While Living In Property: $2,000 per month. 

Rents After Moving Out: $3,300

I was able to secure a private loan for part of my down payment, as well as have my parents co-sign on the loan (I am extremely fortunate and grateful). 

I lived in one room and rented the other four rooms to college students. 

After about 8 months, I wanted some extra income so I rented out half of my room to my 68 year-old co worker, and separated the room with a curtain....

Here is a photo: 

If I were to go back, I would NOT have done this, but it was a good learning experience. College kids and someone of that age under the same roof tend to butt heads....

Here are some key things I've learned after 4 years of landlording/house hacking: 

1. Communication is HUGE. 

- Being straightforward and honest is extremely helpful when managing tenants. ESPECIALLY when you're living with them. 

- Making sure their responsibilities and your responsibilities are clearly defined, giving heads up about workers coming in to do upgrades/maintenance, being proactive about renewals, deposits, strict about the lease agreement (but lenient when it makes sense), etc. has been instrumental. 

2. It was NOT sexy... 

- Especially renting by the room. I've been woken up late from parties, broken glass, revving engines, etc. 

- I've had to haul away a ton of trash, cans, dirty clothes, etc. Spackle and paint numerous times, fill holes in the wall, have had to wake up early to move my car due to the parking situation, etc. 

- Have had to sit down all five tenants and reset expectations in terms of cleaning (including the 68 year old co-worker).

3. When updating, it probably costs MORE and will take LONGER than you think.

- I was able to refinance, pull out $ to completely pay off the gentleman that loaned me part of the down payment, AND have $20k left over for renovations. (My payment ended up being LOWER still, going from 4.25% down to 3.25%). I was extremely lucky with this timing. This property was purchased in August of 2019. 

- I redid the paint, outlets, switches, flooring, countertops, got new appliances, etc. during the students winter break. I had less than 1 month to get it all done. I confirmed with all of them when they would be gone, and let them know what I was doing. 

- When they got back, there was only about 4-5 days that went by before it was finished, but it was scheduled to be finished a week before they got back. 

Here were the results: 

I have now moved out of the home and I am cash flowing roughly $1k after all things considered (I self-manage).

I regret a few things, but feel unbelievably lucky and grateful with how it went (especially with the timing of the purchase and refinancing). 

Keep pushing forward!!