House Hacking Still A Thing?

[Seven Mata]

I came across bigger pockets and I became infatuated with Real Estate & the house hacking strategy. I am wanting to invest 100% into real-estate whether it is flip and sell and/or long term rentals. I would need a multiple unit since I have family and kids. Unfortunately, now I'm realizing house hacking might not even be a thing with the new test they are doing in 2023. I was planning on using an FHA loan 3.5 % down but I make about 80k a year and have about 120k saved liquid. Any advice on how to invest my money in real estate while being the most efficient? Thank you.

[Benjamin Sulka]

Quote from @Seven Mata:

I came across bigger pockets and I became infatuated with Real Estate & the house hacking strategy. I am wanting to invest 100% into real-estate whether it is flip and sell and/or long term rentals. I would need a multiple unit since I have family and kids. Unfortunately, now I'm realizing house hacking might not even be a thing with the new test they are doing in 2023. I was planning on using an FHA loan 3.5 % down but I make about 80k a year and have about 120k saved liquid. Any advice on how to invest my money in real estate while being the most efficient? Thank you.

 Seven, 

Starting on November 18th of this year, you can purchase a home with 5% down conventional loan and owner occupy a 2,3, or 4 unit multifamily. 

With the amount of savings you have, doing 5% down on a property wouldn't hit you much harder than 3.5% would. 

House hacking is absolutely still a thing and many people have been successful with this strategy. The goal is to reduce your living expenses, make some renovations to the property while you live there and learn how to be a landlord. This might be a little more tricky with a family and kids but people have done it, so you can too. 

Run your numbers for how things will look AFTER you move out. Just make sure to consider PMI (private mortgage insurance) in your calculations since you'll be putting down less than 20%.

If you're a new investor (like me), I would start with a house hack and get your feet wet. Network, stay active on Bigger Pockets, read your books, and go to real estate meetups. Most people don't recommend getting started with a flip especially if you don't have reliable people in your network like contractors and an agent. 

Happy House Hacking!