Made a Mistake Trying to House Hack

[Spencer Shapiro]

I had lived in a SFH for 4 years. Then, in order to generate more income and also move closer to work, I decided to sell my house and move into a 4 unit MF in a city where I live in 1 unit. I just moved in and 4 days in, I already know I have made a horrible mistake. The other tenants are very loud and the walls are thin. The space is way smaller than I thought once I put my stuff in and I can't even fit everything I need. It's only been a few days and I cannot bear to live here very long. A multi family is not for me and I have to move back into a single family home. I was completely wrong about being able to live with other tenants in the city and am really embarrassed and devastated with this situation.

I got a lower down payment loan (10%) and good rate for this property with the intention of me living in it but I already know I can’t and am honestly panicking in tears. I need to get another mortgage and get back into a single family home. I’m not sure what my options are here. I would want to keep it as a rental since I don't want to immediately sell it obviously and lose a ton of money on my mistake.

I obviously don't want to commit any mortgage fraud and that was absolutely not my intention at the start but I have to do whatever it takes to get out. I would want it eventually in only my name but my parents would help with any situation I need (cosign, coborrow, down payment, or even buy it maybe), however, I just need to get out ASAP. Please let me know if anyone has any ideas.

[Joey Banasihan]

Hey @Spencer Shapiro, this is a hard one to reply to because a lot of this is based on folks personal thresholds around tolerance, uncomfortability, etc. It sounds like the main concerns are noise tenants and small space, which coming from a SFH that can be quite a stark transition. My first thought is use this time to understand the quality of living that your future tenants will inherent if they rent from you. Are there ways to improving the sound through foam insulation in existing walls? Many companies out there who drill holes all over and can fill cavities with foam insulation and then just drywall work. Can the space be reorganized in the future to utilize the space better? Will this help you get better market rents? How long are the leases for the other tenants? Do you understand the leases thoroughly to understand how to approach the noise, what the city and state laws are, how your property management deals with these complaints or do they? All of these questions and seeking these answers will only train your mindset on how to approach challenges within real estate in the future, and has the potentional to help you become a better investor/property manager. Just some initial thoughts and hopefully you can get through this!