My Revamped House Hack Strategy

[Shane Insang]

Hey Guys. I need to change my house hacking strategy in the Bronx. Originally I was hoping buy a 2-4 multifamily property and rent out the other units. I would not be able to afford an FHA loan on such property in the Bronx. My other alternative would be to save several years for a down payment. I don't want to go with either of these options and have been considering other strategies to finally invest in real estate.

I think a strategy that would serve me well is one where I buy a 2 (or 3) bedroom house with 1.5+ bathrooms. It would be a house where I could afford the monthly payment without renting by the room. I would rent the extra room(s) similarly to a medium term rental property. This would give me income and give me an example of renting by the room if I decide to do it in the future. I would use an FHA loan with 3.5% down and I would move refinance and move out (to rent the entire house) when I am ready to look for another investment property.

Thats the general plan. I have other considerations like quality of the house at purchase, neighborhood, renting room specifics etc. I was hoping yall could critique my plan. Maybe be give me more things to consider and whatnot. Thanks :)

[Wale Lawal]

@Shane Insang

Your house hacking strategy in the Bronx sounds like a thoughtful approach, and it's great that you're exploring creative options to get started in real estate. Here are some considerations and additional things to think about:

To ascertain the level of demand in the Bronx for medium-term rentals, do in-depth market research. Seek out neighborhoods where demand is steady or increasing, and take into account elements like conveniences, safety, and the closeness to public transit.

Pick a home that fits in with your long-term objectives. Think on things like the property's quality, prospective value, and desirability to tenants.

Making use of an FHA loan with a small down payment is a wise choice. Make sure you've looked into all of the financing alternatives that are out there and that you know exactly how much each will cost.

Especially if you intend to rent out individual rooms, create a comprehensive management strategy for the property. Consider using tools or software for property management that can help to automate the procedure.

In the Bronx, become familiar with the zoning and leasing restrictions. Renting out rooms in a single-family house may be subject to special regulations in some places.

Have a well-defined plan in place for room rentals. Take into account the duration of leases, the procedures for screening prospective renters, and the home regulations in order to guarantee a peaceful living space.

It's critical to have a well-defined departure strategy. Recognize the state of the market that might influence your decision to refinance and relocate. This can have to do with reaching a particular equity threshold, real estate growth, or deadline.

Markets for real estate may be very volatile. As you advance, keep up with changes in rules, funding choices, and market trends in order to make wise selections.

Real estate markets can be dynamic. Stay informed about market trends, financing options, and changes in regulations to make informed decisions as you progress.

Remember, every real estate investment strategy has its own set of challenges and opportunities. Adapting and refining your plan based on experience and changing market conditions is a key aspect of successful real estate investing. 

Good luck with your house hacking journey!