New House Hacker

[Charles Evans]

Hey guys,

This is an update on my first post about a house hacking opportunity I'm settling on! So I did a 3-2-1 buydown and secured a 2.875% interest loan for the first year of the loan, and it will gradually go up a percent each year until it hits my rate of 5.875%! Hopefully, by year 3 the market will be good enough for a refinance as well!

But this was an awesome opportunity for me because this is my first living situation where I will be on my own (and getting used to paying a rent/mortgage) but this will put my overall mortgage on a 400k house at roughly $2000 a month for the first year! And I have a tenant locked in for a year at $1400 (they signed a year lease right before the house was put on the market in December). So I'm looking at only paying $600 a month to live in a house and build equity! And during the next year or two I'm going to save up so I can get a second duplex!

Some questions for the people with experience: What are some basic landlord problems I will most likely run into? Clogged toilets, sinks, etc. Also, would a home warranty be a smart move? Looking at some rough quotes, they start at $30 a month apparently and you can cover things like HVAC, plumbing etc...  so I would love to hear some thoughts on that route because I am not handy at all

[Jacob Molina]

How did you do a 3-2-1 loan or how did your loan officer bring that about? I have not heard of one of those, but am gearing up to buy my second house and could possibly use some sort of loan program like that!