All Forum Posts by: Daniel McDonald

Hey Chad, 

Do you know what strategy you’re shooting for? Where are you located? All the information is out there for free but isn’t organized very well so it can feel very overwhelming. There isn’t necessarily a right or wrong if you want to go the mentorship route but I’d focus on narrowing down your strategy first. 

I was in Craig's fraternity in college, he was the reason I stumbled upon BP and that book was the reason I got so invested (literally) into house hacking. Great read! 

House hack for sureeeee. I live just outside of Boston and that's how I've managed to buy two duplexes. It's so powerful. 

Is house hacking an option for you? That's always my suggestion for getting started! 

You don't have to switch lenders, but you have to refi out into a conventional. There's a chance your original lender won't be the best option for doing this so at that point yes you would "Switch" to someone else. However, that's not an overly complicated process. It will essentially just feel like you're closing on the house again.In fact when you're looking to refi I would suggest shopping around anyway. I had a terrific experience with my lender for getting an FHA loan but he couldn't offer me the same things when I refied out and he knew it. It didn't make sense to use him.

Hi Daniel, 

I can't stress enough how valuable house hacking is when you're getting started. I believe it can fit anyone's situation, even if they have no desire to go beyond that in terms of investing. I am on my second house hack in 3 years just North of Boston. It has been super beneficial for me which is why I try to help others on their journey (IG @househackandhustle). 

I could talk all day about this but if I had to keep it short I would say these are a few of my biggest tips:

-Find the right agent, ideally a former/ex house hacker, bust at the least should be investor friendly

-Don't get stuck in analysis paralysis, I guarantee you won't hit a homerun your first go around but getting on base already puts you wayyy further ahead then most people

-Never stop learning, even when you get a house hack, there will always be someone out there smarter than you and learning from them can be huge, even one tip can save you so much time/money/or headaches. 

Feel free to connect! 

Hey @Alec Devall treat that portion as an other. BP has to have it to cover there bases but you wont always use it. You can use it blank if it doesn't apply. Utilities is such a toss up and can be area/property dependent. For example, my heating for my duplex isn't split so I can't legally charge for oil. Theres no way of telling whose using what. But I also live in an area where almost every landlord covers the water bill. It just really depends on where your investing. Look around at other rental listings and get a sense at what's normal and what's not. 

 I've gotten the reno out of the way as soon as I purchased the property. This speeds up the stabilization part and It makes your life easier not trying to renovate with tenants in it. Not to mention this will force that appreciation and likely increase rents right off the bat. I would figure out a way to do the renos once you purchase, or at least knock out the unit you're renting and learn how to do things in your unit/slowly tackle it. I'm not a huge fan of the hard money route though for the first go around but the 203k loan could be a great option. I'm not saying avoid renos, just avoid using hard money. 

As for cash flowing after you move out if it doesn't do it when you're analyzing properties I wouldn't get it. It's ok to just decrease your living expenses while you're in it but it should cash flow once you move out. Not a ton you could do besides adding an ADU or more units, which isn't feasible on every property.

Hey Ian, 

I haven't heard anyone cash flowing while house hacking in a long time UNLESS they create serious value add. For example, you find a duplex that can be converted to a triplex, or you finish a basement into a STR suite. There's a way to cash flow on every property but it's going to depend on your purchase price, and how much creativity/discomfort you're willing to go through. You may not have the money it takes to finish an entire basement or build an ADU. In my opinion, the people who wait around for the perfect deal never get started. The best thing about house hacking is it's forgiving. I am on my second one just North of Boston and it's been great for me. Have either of them been a homerun? No, but I've got two base hits that are appreciating like crazy and increasing my net worth. My advice is don't kill yourself over finding the perfect deal. I've never met anyone who has on their first purchase. Instead, focus on lowering your cost of living now and having a cash-flowing property after you move out.