All Forum Posts by: Daniel McDonald

I love the house hacking route. I am on my second one in 3 years. I think especially now it's the safest entry point. I think the hard money route is a little too risky for the first property. Renovations can be tricky, especially if you're inexperienced. You're right in the PMI part but you'll probably refi into a conventional at some point anyway so I don't know if you need to be super concerned with that just yet. Always happy to chat about my experience!

I am so sorry for your loss. I can't imagine what you're going through but I can imagine the desire to take a step back. The FHA loan won't be a problem. I actually used an FHA twice in 3 years with two properties a street over from each other. I had to refi out of the first into a conventional but you already took care of that step so you shouldn't have an issue with getting the loan.

Are you thinking of the FHA route so you can put down as little as possible? Because depending on the state/location/lender you can put less than 20% down with a conventional too. You could use the 10% conventional with a "second" home loan. That will basically say you can't rent it out 365 days a year but you will be living there anyway so I a good option to talk about with a lender. With the FHA route yes, you will need to reside there for a year legally, but after that, it's none of their business where you move. I don't think you really need to tell them either that you're only planning on living there for a year. It may seem like the plan now but a lot can change in a year. I'm not saying you will stay at this new location for your entire life but my plan was to get a second house hack a year later, I didn't, but the point is we can try and make plans all we want, doesn't mean they always go exactly accordingly.

I think your biggest first step is to evaluate your finances, what renting out your current house would entail, and narrow down the locations you and your wife are interested in. I guess that's more like 3 steps but you can catch my drift. 

Hey @Jon Delmonte   Yes, my advice is work with an investor friendly agent. That’ll make a huge difference. Happy to put you in contact with someone. 

Also, I’d recommend house hacking if you can. That reallllyy helps getting your foot in the door. Happy to chat through my experience. 

If you’re looking for appreciation and long term wealth MA is a beast. Yes cash flow could be better but it all depends on your goals. The state itself isn’t overly landlord friendly but still a lot of solid investments. Like anywhere else location will matter. You talking near Boston or Springfield? Makes a difference. I’m house hacking just north of the city and it’s been great. Happy to chat further about my experience. 

 Yes. They both needed heavy cosmetic work. About 50k each. It was definitely easier keeping an eye on things being local. It also allowed me to build a good relationship with my contractor. Of course he could have just sent videos and pictures too, but I was able to really make sure things got done right. Here is my two cents, because we definitely have similar thoughts:

I live just north of Boston so I definitely understand the draw to 50k properties OOS. I started house hacking because I firmly believe the best place to invest is your own backyard. Something about being able to drive to the properties, and actually know your tenants is comforting. But I understand if other investors thinks that's small minded. I have learned a lot and feel more comfortable now to explore OOS and have been. I'm starting to build a team just struggling with the numbers working. CA is expensive, we all know that, but what is your goal because wealth is built in appreciation, cash flow is just a bonus. I'm guessing a duplex in CA will appreciate wayyyy more than a SF in Arkansas. But again, I get it. I have to constantly tell myself it's not a race. Trying to avoid mistakes too. 

Dealing with FHAs is tricky. They can be really annoying about necessary "repairs". In my area (MA) they don't like chipped paint.I actually had to paint the stairs of my first duplex BEFORE I even owned it. They can be really finicky. But not ever repair will cost you the loan so that's where working with the right lender will be crucial. 

I think you answered your own question. In state vs out of state is going to be different learning. I have two duplexes locally that I self manage and maintain (1 I am house hacking). I've learned hands on project management skills. I am also looking to invest out of state and I am learning different things like building a team you can trust. The majority of my work will be up front then a PM would likely take over. Different set of skills but if you're planning OOS anyway I'd say just do that. Who cares if you learn how to self manage in CA if that's not a goal anyway. 

Hey Kyle, I am located in Massachusetts, currently house-hacking my second duplex. I am always happy to connect with people and help where I can or grow wealth together! 

Hey everyone, I am in agent in MA and I am looking to help others house hack. Would love to talk to investor-friendly lenders in the area and pick their brains. Thanks! 

I was shopping in Augusta, GA and the section 8 3/1 payment is 1120. Definitely market-dependent.