Newbie Seeking Strategy Advice on House Hacking and SFR with Downpayment Assistance

[Alex Jacobs]

. Hi BP, I am a newbie investor in Houston, TX and I want to build a rental portfolio. I’ve been told that “house hacking” or buying a single-family residence (SFR) with a downpayment assistance program and renting out the rooms is a good place to start. I’m young and want to build up my number of investment doors in the most efficient way possible and with the lowest downpayment’s possible. My questions to you: (1) are the better avenues than house hacking SFR or (1-4) multifamily properties for me to get started? And (2) how do I find downpayment assistance programs to help get started. Thank you in advance for your answers.

[Joey Banasihan]

Hey @Alex Jacobs, I'd start by finding a solid investor friendly agent in your local area; definitely meet with a few of them, but ideally you will find someone who has a decent network that can connect you with resources such as a solid lender. Not just a lender who can put together a loan document (they all can do that), but someone who is interested in your goals and can advise you in different strategies, downpayment assistance programs, etc that can get you going.

From there your financial strategy and the local market will begin to steer you in a direction of homes available and that fit your finances. Ideally before you purchase your realtor/lender will provide you with a property management company who is willing to provide resources, leases, and whatever you need to get house hacking. This is the blueprint I have been working with my past/current clients, its simple, boring but can be effective.  Good luck!