All Forum Posts by: Anthony Swain

@Luka Milicevic

Yeah it is increasingly difficult, but I do have an appreciation for the resiliency and ability for our generations to get creative. 

I do see the 45-1 hour commutes being more common with more townhome new developments in those ranges. I think that is another viable option, especially if more accessible public transit becomes available. 

You're right on that. You NEED much more income for the same house now. I am interested to see if lowered interest rates even helps affordability or just raises prices. 

What do you think?

 "Renting you're paying 100% of someone else's interest" Now that hits! So true! Haha

@Daniel McDonald

I agree. Income not keeping pace with housing prices will be a huge factor for multi-generational house holds & house hacking. 

@Wyatt Wolff

Unfortunately, I think affordability is probably the bigger reason too. You're right. 

@Steve Vaughan That is awesome you're getting paid to live in your housing situation!

Yes, a lot of personal finance people preach the rent option, but house hacking is almost always superior. 

I think you're right about the multi-house holds. Personally, I think even at our forever home we would like to have an in-laws suite, separated basement, or an ADU of some sort to house our parents.

I appreciate your input Steve!

Hey gang! 

 I wanted to share an interesting article. 

In short, the article states, Gen Z & Millennials are using house hacking (HH) with rising prices and current interest rates to begin home ownership. More than half of the surveyed Gen-Zers and Millennials agreed HH as positive. 

The article, mentions a household would need at least $114k to afford a median priced home ($420,000 as of writing). I think HH provides these new home buyers the opportunity to purchase a home with some financial flexibility being able to rent out portions for extra income. 

I think Gen Z & Millennials are more keen on a nomadic lifestyle too. A lifestyle that they can travel frequently and for longer. A solid HH gives them that flexibility to maintain that lifestyle. I've met several Millennials, like myself, that rent out portions of their home and their entire home while they go away on multiple week travel excursions to offset most or all of their mortgage. 

How do you all feel? Do you think this is a wave of the future or just a trendy strategy for now?

I think it is here to stay for my generation and future generations. As a house hacker myself, I am doing it at my wife and I's current duplex and will continue to do it for at least our first few properties. 

Hey!

Do you plan on doing long-term rentals? 

Do you plan on self managing or hiring a property management team?

If self-managing, there are plenty of softwares out there i.e. Stessa, RentRedi, Avail, Tenant Cloud, etc. that make it superrrr easy!

If you're hiring a property manager, then they should help place a potential tenant for you. I'd make sure to have a clear cut criteria of the tenant you want in the property to help direct the PM company.

I spoke with another investor that uses a real estate agent in New Jersey to help place her long-term tenants. I guess it is more of a thing in that state.  In NC, that doesn't seem to be something agents do frequently. 

Good luck with your house hack Hayan!

Hey @Whitney Patterson,

Congrats on taking the steps to become an agent!

Have you considered starting with the house hack living in one unit while you rent out the other to start? You could learn the necessary skills to furnish, market, & manage the other unit. These could be valuable for future investments while you have a good safety net of having a steady place to live. 

House hacking it for a year or so, could allow you to build up extra funds for a future down payment, furnishings, and other costs. 

People much much wiser than I, always remind me, true wealth is built in the long-term. This applies to real estate too. It is about the long-game. 

Ultimately, these decisions are based on your own lifestyle & goals.

Good luck Whitney!

Hey @Account Closed welcome to the community!

House hacking can be a GREAT opportunity, as many of us in these forums believe. Also, using a low down payment option can be a good tool to utilize leverage. 

What area are you in? I don't know if you mentioned that?

If I was you, I would work on paying off that credit card debt, before you get into another large debt, especially if that $7k is high interest debt. 

As far as savings/down payment, it is probably a good idea to have a emergency fund buffer beyond your down payment. On that same note, see if you qualify for any down payment assistance programs/grants. $50k per year you may be eligible.

Have you went through the pre-approval process? This is where a lender will review your financials and see how much loan you'll get approved for. This will give you a much better idea of how much home aka house hack you can afford.

Good luck James. You're in a great place to network, learn, and grow. We are all here to help!

-Ant

@Ryan Thomson always has great insight into house hacking, so I'm glad he chimed in here.

@Christopher Pride I just want to throw in my two cents. OF the markets you have considered, have you analyzed the mid-term demand? This could potentially add some cash flow to your house hacking position if you convert 1 or 2 of the units to that strategy.

It sounds like you're handy enough to rehab some units if need be and/or do most minor maintenance, so you can cut down on that % reserve.

Anyway, good luck man! I think if you connect with one of these BP member/agents you'll be heading in the right direction. 

And just like that, @Daniel McDonald... A great connection to make!