House Hacking
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hemlane-a9392011949df124ea8ee63be2fb270c9423d6cd446ec67af23c96616e618606.png)
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Is House Hacking in California feasible with traditional financing?
Hello,
I've been working on getting my first house hack deal in the central valley in California for almost a year now. I've looked at on-market deals daily, joined all the Facebook groups where they post "off" market deals (wholesalers, etc) and have spoken with many realtors. I think I have a decent grasp on how to calculate all the expenses and simulating potential gross income, including potential cash flow. In all potential properties, my numbers have come off at least -$500/m. They all lead to a significant negative monthly return due to one or more of the following reasons:
1) Asking Price is too high
2) Traditional loan rates (FHA and Fannie Mae) are too high and affect total debt payment
3) Existing rents are too low, so loan underwriters won't approve.
4) Market Rents aren't high enough
5) I would like to use the minimum down payment with FHA (3.5%) or Fannie Mae (5%).
So, from all of these attempts, my understanding is the only way to make a house hack work in this region where I would at least breakeven on a monthly basis, is to purchase at a significantly lower price, lock in a nice creative deal or bring up my down payment to at least 20%. I've been unsuccessful with the first two and a higher down payment is not within my range, nor do I think it's worth it.
Same issue for house hacking with a SFH.
I've spoken with several lenders. I don't know of other options that exist. Is a house hack in this region essentially impossible from a positive cashflow stand point if you go through traditional financing and purchase at market value? Is there anything I'm missing or is this just part of the game where you have to find that one deal that works?