All Forum Posts by: Anthony Swain

@Account Closed

Suchhhh an odd scenario. Please keep us updated. I have to hear how this turns out lol

Welcome @Mary Wells!

You came to the right place to ask your questions. These forums are a fantastic start!

I think owner occupied primary home financing can be some of the most favorable terms out there, especially with the low down payment option. I would recommend speaking to a lender to see what you're pre-qualified or pre-approved for (if you're ready to take action), so then you have a realistic amount that can be financed. This will give you a clear picture of the type of property you may be able to purchase. A condo can make sense in certain HCOL markets, especially if there is strong rental demand and you have a specific plan for it. There are cons with condos however, including HOAs, less likely to appreciate, etc. Maybe you can run calculations on condos versus homes in your desired areas or within commuting proximity to see the differences short and long-term. 

Overall, house hacking is a great strategy to get started. I'm sure there are plenty of real estate professionals that you can connect with on here to help you on your journey.

A good book recommendation is Craig Curelop's The House Hacking Strategy Book.

I look forward to hearing of your progress!

-Ant

Hey @Account Closed, 

On a previous post in the house hacking forums I did a numbers breakdown of my house hack. We actually found it on market and we were able to finance with the 5% Fannie Mae conventional loan. 

I think it depends on your overall goals and definition of success, but our house hack will absolutely help us on our wealth building/investment journey even without it being a homerun. 

It is important to factor in all the benefits of house hacking into your calculations, i.e. amortization, appreciation, income, & potential rent avoidance. All of these factors can lead you well into double digit and even triple digit net-worth returns on investment (NROI). 

FHA can be a great option for financing too, because of the low down payment (3.5%) and potentially more favorable interest rate terms. However, you will have PMI for life of loan most likely and there are usually higher premiums to originate FHA loan. I'd recommend speaking to a referred lender to help you understand all of your options.

@Beth Anderson mentions a great point that creative financing can be a great option. It certainly is for the right property and right terms. However, you will need to find a seller that is willing to do this and it wouldn't be a bad idea to have a professional help guide you through this process.

I will play devil's advocate and mention what kind of properties you may get creatively. I can imagine a juicy well taken care of property would not be up for grabs from another landlord. It will most likely need some level of TLC. Not necessarily a bad thing, but something to consider. 

Keep at it Beth and James! 

Thanks for the mention my friend @Daniel McDonald! I appreciate it.

Happy to connect @Rob Leet. Congrats on graduating business school! 

My wife and I bought a duplex in Charlotte last year. It was one of the best decisions we've made. House hacking is such a great strategy, especially as your first investment. Charlotte is such a great city to live. I think you will really enjoy it. I'll shoot you a DM! 

Also, @River Sava I'd be happy to connect as well. It is always a good idea to have a great network of lenders.

-Ant 

Hey @Christopher Morris,

Great questions!

@Matt Devincenzo is correct about FHA and Fannie Mae being separate entitites. FHA still requires the self-sufficiency, but Fannie Mae does not. This is what makes the new 5% down option so appealing for new investors/house hackers.

Everything I've heard from people that were successful using another primary loan for their next house hack is in line with @Daniel McDonald. It has to be a reasonable excuse of why you would need to move, 2 Bd to 3Bd, more sq ft., MF to SFH, etc.

Lastly, FHA & FANNIE MAE do expect you to live in the property for at least one year, but the reasons for getting out of that commitment are mostly vague. Once it again, it can be for a particular reason that you would need to move.

Good luck with your process Christopher.

@Wale Lawal Great points! You hit the nail on the head.

You're right, all the benefits make it so appealing.

I think it will continue to be popular in the investing community unless something drastically changes. 

Hey @Jake Hughes

Awesome man! This is an exciting process! Not only for investment purposes, but if you're house hacking, then it will be your home too.

It sounds like you're motivated considering your proactive approach. Kudos to you.

I think the recommendations for zillow, facebook, and apartments.com are very commonly suggested. 

I started using Avail.com for PM and Stessa for my bookkeeping. It has made everything a breeze and I think it would be conducive to scaling too. 

You'll be in a better position than not by utilizing any of these resources. I'd choose one, then trial it out to see if it fits your needs. If it doesn't, then you can try always try another. 

Good luck! Keep us posted!

@Andrew Postell

This was HUGE!!

My wife and I are were struggling to find a small multi family seller that was willing to even consider an FHA offer. We were struggling with finding a way to leverage a low down payment with this strategy. We ended up finding a GEM in one of our favorite locations, but they wanted conventional offers only.

BOOM. The Fannie Mae announcement came out that same week! This allowed us to utilize the low down payment, ability to remove PMI after renovations/gaining equity, and not paying the upfront FHA premium. It was a BIG win for us.

I think you're right, this will help many others considering small MF (2-4 units) as their primary property.

@Stacey Stegenga

Hey Stacey! Good to hear from you. Its been awhile! :)

Wow. Interesting! Denver is very saturated? Are there are a lot of people attempting to do this in your opinion?

I am sure there are cycles up and down for people renting rooms, but I think it can be a great option for someone that isn't looking to take on a year lease for an apartment themselves. It could still save them money, but obviously everyone may have a different preference. 

@Mike Dymski @V.G Jason @Sam Yin

Thanks for dropping by! I always appreciate some good dialogue. 

I totally understand just having room mates or splitting housing costs were a thing for a long time. I don't know if I am as old as you three, but even in my time, I split housing expenses since I was 18. The house hacking term definitely gained some mainstream attention, but I think its a cool name, so why not refer to it? *shrugs shoulders with hands up

A man much wiser than I coined the term anyway. Which one of us would argue with him right?! haha 

I would like to believe people are getting much more creative and tapping into the potential of "house hacking" now. I don't believe it was utilized at this level a hundred years ago or even decades ago. Now, people are using short-term rentals, mid term rentals, rent-by-room, etc. I think it's more attractive than ever, because of all the resources now too! Airbnb, Furnished Finder, BP (to learn), all the various PM software, etc. 

Anyway, I think the strategy is here to stay and I think multiple generations will take advantage of this.