All Forum Posts by: Daniel McDonald

Hey @Robert Fry I've been house hacking for a few years just north of Boston and it's been a game changer. 100% recommend it to all newbies. Here's just a few tips I have:

*Your first deal isn't going to be a homerun, just get on base. A few years ago people could house hack and actually profit each month, that's a lot more challenging to do in today market, but what if you could cut your rent in half? That's still a tremendous win

*Finding the right agent is going to be key in making this a smooth process. I recommend finding one who's done a house hack themselves.

*Tell everyone and anyone what your buy box is and what you're looking for. Clarity will not only help you but could very well be your in to an off-market deal 

Good luck! 

House hacking isn't illegal or anything so I recommend talking to a HH friendly lender. The only issue I see with starting with a single family is you won't be able to qualify for more based on rents. They will essentially look at it as just a regular primary residence. You will qualify for more with a multi family. As long as you're living in the property for a year a lender shouldn't care what you're doing with it. Don't commit mortgage fraud, that's it.

If MFs aren't available in areas you actually want to live I wouldn't force it. House hacking can be used on any property so I would start by narrowing down a few places you A. want to live and B. that will actually rent. If a certain type of property works better in those areas then so be it. It doesn't have to a MF. 

Hi @Denis Vaughan I am house hacking my second just north of Boston. I refied on the first while I was living there and I recommend doing so because you'll get a better rate vs. refiing on a rental property. 

I wouldn't open an LLC without having anything to put in it. Say it takes a year or 2 to buy your first property you would have just been eating those LLC costs.

@Bidkar Salazar house hacking applies to your primary residence. If you wanted to use an FHA on the duplex you would need to occupy it for a year. But there's no rule saying you have to rent out house #1. If your mom/kids are occupying that first house it won't matter. Whoever is on the mortgage is the one who needs to live in that property if using an FHA. Sounds like you don't have anything standing in your way.

@Jalen Sowell what are your goals? Are you more concerned with long term wealth or just cash flow? I don't think either is necessarily a bad plan but definitely depends on what you are looking for. It can be very tempting to buy cheap properties but you're right Nashville will likely continue to grow where as the other place may not. I bought in an expensive area that has made me appreciation rich, not cash flow rich. However, for my lifestyle, job, etc. it's not the end of the world and the house will likely be my retirement fund someday. If I bought a house for a 100k, in 30 years it's worth maybe 300? 400? My point is you gotta figure out what you're trying to get out of this first. 

@Kristyn Cross totally get the desire to want to move out. I had the opportunity to move home too and basically live for free and it wasn't worth it to me. There's more to life than just stacking cash. That being said I think this is taking a hard look at your current financial situation, we only heard about a small chunk but if I were you I would go through my entire financial situation with a magnifying glass. What is realistic when you move out? What could you afford? What wouldn't cripple you? Etc. I think this situation will be easier to reverse engineer than give you some broad idea.

I am also not familair with the AZ market but start looking around, what's popular, what areas rent the best, etc., and network as much as possible. Not saying this is doable with a small child but could you get to any meetups in the area? Network with other agents? etc. My thoughts here are just the possibility of finding a decent off-market deal. 

Next is the financing piece. You'll need to become an expert in your market (know what's realistic to spend) and see how you can come up with that. Maybe you already have enough for a down payment using an FHA maybe not, but you can explore programs too. Explore income-related lending options. For example, I know in Massachusetts they're are down payment assistance programs SPECIFIC to first time home buyers buying a multifamily. There could be something similar in AZ. Keep that RE license active, use that to fund part of your down payment. I totally regret not getting mine sooner.

Lastly, the only people who don't think you're crazy for buying real estate are the ones already investing themselves. If I had a dollar for every person who looked at me like a psycho for being a landlord but they're paying 3k for a 1 bedroom in the city I probably wouldn't need to invest at all😂. You'll learn to tune doubters out. 

Feel free to connect. I'm on my second house hack just north of Boston, but clearly love talking about this stuff  😄

Hey everyone,

There aren't enough meetups in the North Shore so I am looking to start one and gauge interest. I am thinking something casual, a monthly meetup at a bar in the Beverly/Salem area and talk all things real estate. What's going on in the market, strategies, etc. All are welcome, no investing experience is needed, just like-minded individuals.

I think you can still be an expert in the market regardless. Some clients may want to work with someone else but not everyone you come in contact with will want to work with you. I just got my license too in MA. I am a 2x house hacker, while I do think it will look good to SOME, I don't think it's going to be the biggest draw to me.