DACA/Dreamer on a Path to Financial Freedom through House Hacking

My name is Diego and I am a Dreamer & DACA Recipient. My journey hasn’t been easy, I have faced obstacles and circumstances most American’s won’t have to, but investing in real estate has helped me create a live worth living. Your obstacles, don't determine your future. It's not what happens to us, but how we act that determines our future.

• I came to the United States at the at of 9 from Lima, Peru.
• At age 16 I found out how being undocumented was going to affect me, when found out I couldn’t get a driver’s license.
• At age 18, I graduated 3rd in my high school class and got into Florida State University, but I found out I couldn’t qualify for student loans because I wasn't American. I won scholarships but most were taken away because I wasn’t a citizen or didn’t have my green card.
• I decide to go to college anyway because I figured I would be able to get a job to pay for college.
• At age 19 I found out I didn’t have work authorization and can’t work.
• At age 19, I found out I could open my own LLC and work as a contractor. I began doing website for small businesses at non profits. Drove my bike everywhere to meet with clients.

• At age 22 I graduated with 2 bachelor degrees on the top 1% of my class at FSU in less than 4 years (paid for by me).
• At age 22, I got my DACA documents was finally able to WORK and DRIVE, and got a job as a software developer in Austin, TX
• At age 22-23, found out I couldn’t qualify to buy a home due to my DACA status
• At age 23 I bought my first property with CASH and partner with my dad
• At age 24, bought my first House Hack in Austin, TX; I found a lender who would qualify me.
• At the age of 27, I own 8 rental properties, soon to be 10 🙂

My mindset changed when I read Rich Dad, Poor Dad at the age of 21 and found out the meaning of passive income. I began reading about real estate and ran into BiggerPockets.com, from there I began to consume as much content and made it a goal to start House Hacking as soon as possible!

My First House Hack

I decided to house hack by renting out rooms and figured the best way to get it filled up would be to get a home that was renovated/upgraded. I didn’t want to take time to remodel the kitchen, paint, change floors, or put a new roof. I wanted it to be move-in-ready so that I could start making money as soon as possible, plus I didn’t have much experience in remodeling or doing property management. 

What I did know is I could market the property online through Craigslist while I was in the process of buying it just to see what kind of response I would get. And I got a lot! By the time I bought the house and had the keys in hand, I had 2 new roommates moving in with me and each paying $550. Which meant, I was making money from day 1! Boom!

I bought a 4 bedroom home, around 1,850 square feet in the north Austin, TX area. I used an owner-occupant loan program (5% conventional) so I didn’t have to put a lot of money down. I realized it would better to buy a 4 bedroom home so that I could have 3 people paying most of my mortgage. Also, if I had a vacancy or wanted to use one of the rooms as a guest bedroom or an office, I was still making a decent amount of money.

I found all my roommates through ads on Craigslist. The ad consisted of:

1. 1) Description of the property
2. 2) Location & proximity to employers, shopping, highways, etc
3. 3) What I was looking for in a potential roommate
4. 4) About myself and best way to reach me

Now... let’s get to the fun stuff... the numbers!

The DEAL

Sales Price: $170,000

Down Payment: 5% - Conventional Loan

Mortgage Payment: $1,350

Gross Monthly Income: $1,650 (Each Room Rents at $550)

Monthly expense/vacancy: $100

Monthly Net Profit: 1,650 - 1,350 - 100 = $200

I was making around $200 a month, plus living for free! That $200 paid for my car payment at the time.

It felt amazing to have erase my monthly housing expenses & also getting my car paid for by other people. It was at this time when I understood the saying: “Make your money work for you.”

From there, I began to save for my future properties and future house hacks. I used low money down loan programs to buy homes and live for free It has been amazing not having to pay a mortgage payment from my own pocket since the age of 24! 

I decided that it was important to live below my means, as I built the life of my dreams. This gives me freedom, and it’s what gave me the courage to leave my corporate America job and pursue real estate full time.

It has been an incredible journey but now I am happy to share that I own 8 rental, for a total of 12 doors, and I still don’t have my green card yet! I have built a portfolio that gives me about $4,000 a month in my 20s while living for free.

Real estate is a beautiful industry to be in and begin building passive income. AND House Hacking is one of the best ways to get started! 

If I could do it, without being American or having a green card.

If I could do it, without having the ability to work or drive until the age of 22.

I know you can do it too!