All Forum Posts by: Haley Jang

Hello BP team, a new house hacker here.

I'm currently under contract for my first-ever primary townhome, which features 3 beds/3 bath. My plan is to rent out two of the rooms to help cover my mortgage payments.

So far, the property appraisal has been completed, and I've set up home insurance. I'm considering furnishing every room to make the transition easier for tenants and to avoid potential damage during moves, especially considering the property's multiple stairs.

However, since I don't yet have access to the property, there are limitations on what I can do. I can't order furniture, set up moving dates, or advertise for roommates.

I'm also undecided on whether I should pursue STR/MTR/LTR options. (5 minutes away from groceries, 15 min drive to DT Seattle, <30min bus to DT Seattle)

Do you have any advice on what steps I should take leading up to the closing date, which is just 2 weeks away?

Thank you

Hello BP, 

I'm currently shopping around mortgage loan for my first house hacking purchase.
Currently I have couple options for mortgage program from a few lenders and I'd like to hear advice from you to choose the best option for me!

Base info: 

Purchase price: 730k newly constructed town house

Option 1. 30 year fixed, no PMI, Interest 6.875%, total closing cost 92k with 10% down, monthly payment $5000

Option 2. 30 year FHA, Interest 5.5%, total closing cost 89k with 10% down, monthly payment $4700

Option 3. 40/15 year balloon, no PMI, interest 6.625%, total closing cost 47k with 5% (max) down, monthly payment $4700

Option 4. 30 year fixed, Interest 6.5%, total closing cost 85k with 10% down, monthly payment $5000

My strategy is to reside in this property with roommates for 1-2 years and then renting out the entire property once I purchase another one. I am also open to acquiring an investment property in the middle if there's good opportunity. Based on my research (including RDPD), it seems that minimizing the initial down payment and using available cash for further investments is what's advised (+ pull more money from refinance when the value increases later). If my goal is to continue investing in real estate and consider refinancing when mortgage rates become lower, would Option 3 be the most suitable choice for my circumstances? If Option 3 is not ideal due to the risk of balloon, is Option 2 the best?  Are there anything else I should be aware of?

I know there's no single correct answer but would greatly appreciate your input and guidance as I'm a bit nervous with my first big purchase. Additionally, if you have any recommendations for professionals I should consult regarding these decisions, please feel free to share. Thank you as always! 

Hello BP,

I'm currently looking for the most effective house hacking strategies for my first home in the Seattle area.

Here are some key aspects of my situation:

1.  I commute to downtown Bellevue 2 times a week.
2.  I don't own a car. (I rely on public transportation and company shuttle)
3.  I travel frequently. (up to 3 months a year)

Based on my research and analysis, purchasing a MFH in the Seattle area appears to be challenging unless you are willing to consider properties located quite far from the city. While I'm open to the idea, constructing an ADU/DADU on a SFH doesn't particularly appeal to me, especially as a first-time homebuyer.

Given that I'd like to remain relatively close to where I work (downtown Bellevue) and where I hang out (downtown Seattle), here are several potential options:

Option 1: Buy a SFH with an ADU/DADU – Ensure it has the necessary permits. 

Pros: Appreciation, separation from the rental unit, (almost) no HOA fees, possibility of STR, MTR, or LTR

Cons: Relatively old properties within the budget, potentially far away from work.

Option 2: Purchase a Townhome (2 bed+) and Lease Out Any Extra Rooms. 

Pros: Appreciation, income from renting extra rooms, possibility of STR, MTR, or LTR

Cons: HOA fees, potential distance from work.

Option 3: Invest in a Small Studio or 1 bed Condominium in Downtown Seattle and Use It as an Airbnb while traveling - Ensure HOA approval. 

Pros: Most affordable option, familiar with the area, guaranteed commute. 

Cons: Approximately $500 HOA fee even for small units, risk associated with renting out my primary residence, the need to find cleaning and management while I'm away, potentially less appreciation.

I'm thinking about buying a property by the end of this year in the $300k to $650k range and putting down $30k to $60k to keep sufficient funds for further investments. (Basically I want to start investing with a small amount of money so that I can learn from the experience and make smarter investments in the future) I'm open to exploring both conventional and FHA loan options.

I'm pretty nervous as a first home buyer, but I'm sure that I will learn a lot from this purchase. I understand that I shouldn't expect to hit a home run with my first buy, but I want to make sure I don't miss any important details. With that being said, I would be extremely grateful for any insights or advice you can provide. Additionally, if you have any recommendations for lenders or real estate agents, I'm open to hearing those as well!

Hello all, 

I'm thinking about renting out a condo unit whenever I travel. I know people often say condos might not be the best investment due to HOA stuff, but I still want to run the numbers. My idea is to live at the condo for less than a year, Airbnb it whenever I'm not there, and then move to a new city while fully Airbnb-ing the place. My goal is to avoid spending money on apartment rent in downtown (and possibly even generate some extra income) until I make the move to the new city for MFH investment.

Here are my questions:

1. Assuming "there are no HOA restrictions" and "the location is really popular area", what things should I really think about to figure out if this whole plan makes sense financially? I've got the basics like Mortgage, HOA, Taxes, Cleaning fees, and vacancy rate down, but what other expenses should I be aware of, especially for short-term rentals? I've mainly thought about long-term rentals before, so diving into short/midterm rentals, especially for my primary home, is new to me. Would the 1% rule still be a thing here? Any additional guidance or resources you can offer would be greatly appreciated!

2. Can I put a lower downpayment (<20%) with a conventional loan since I'm planning to make it my primary home, even though I'll be running it on Airbnb? Appreciate the insights!

Hello BP, 

I am currently working and living in Seattle, while my boyfriend is moving to Chicago for his school. I have been exploring the idea of House Hacking through Multi-Family Homes in Seattle, but it seems that the housing market in Chicago is much more affordable (Looking for areas like Wicker park, Logan square, or similar areas).

From what I understand, I might not be eligible for an FHA loan in Chicago since my primary residence is still in Seattle, and my work is tied to that location, even though my job allows me to work flexibly from Chicago.

Considering this situation, my other option would be to pursue a conventional loan with a 5% down payment. However, I am concerned that I may encounter challenges in finding lenders and could potentially face higher mortgage rates, despite having an excellent credit score, being debt-free, and having stable employment in a prominent tech company for several years.

My goal is to invest with the lowest possible down payment for future investment opportunities, but I am willing to consider a 10% down payment if it is truly necessary. I would greatly appreciate any insights or advice regarding my situation. Thank you!