All Forum Posts by: Hector Bastida

@Chris Gibbs That's a good idea, thanks so much!

Hello BP family,

I'm interested in house hacking and love that BP has the various calculators for analyzing deals.  Has anyone used the calculators to analyze a house hack?  I'm assuming it would be the "Rental property" calculator.  If you're planning to live in the house hack, is using the rental property calculator still the correct one to use?  How do you factor in yourself living in the property to analyze the deal?  For example if you're planning to buy a duplex, live in one unit and rent the other.

Thanks!

Hector

@Clarence Johnson Thanks for the input.  I was actually thinking of Inglewood adjacent.  I figured that would be a hot area with the new stadium being built.  And it would be pretty close to the Westside and my work.  I love the San Pedro idea...although that does put me farther away from work.  

Is your sister going to owner occupy one unit and rent the other?  What type of rent does she expect to receive in that area?

@Kristina Heimstaedt Thanks for the input and insight.  I've been so focused on the location that I haven't thought about how rental rates of the areas I'm looking into.  What would you recommend are good ways to look up and track rental rates?  

@Herman Stevens That is correct, the 600K factored in the rent from one unit (since I'd be occupying the 2nd).  It was only a rough calculation, the mortgage broker that gave me that didn't officially run any numbers.  He guesstimated based on several factors like my income and the maximum threshold of my debt-to-income ratio.

Okay so that's the frustrating part. I keep hearing different rules on how FHA loans can be used. One lender said FHA can't be used in CA for multiplexes. Another lender (the mortgage broker who quoted me the 600K) said FHA can only be used for up to 2 units not 3 or 4. Where can I get more clarification on that?

@Nathan Yee - Thanks for the tip.  Being a newbie I've never heard of the FannieMae Homestyle Reno Loan.  Sounds like a great tool so I'm definitely going to research into it.  I have excellent credit (low 800s) so I have that part covered.

@Account Closed - Thanks for sharing your story!  I've never thought about that area but it would definitely be something to consider.  It would make it only a 30-40 min commute to the Westside which would be perfect for me!  I'll definitely reach out if I have any additional questions.

@James M. thanks for your insight.  That was very helpful.  Yeah I think I'm going to target properties that need some TLC.  I like your idea of making the improvements and repairs yourself.  That must have saved you lots of money.  I guess the only way to learn is to do it, right!?  

Just curious, besides Long Beach, what other areas were you looking into?  My goal is to be as close to Marina Del Rey as possible.  I've also thought about Gardena or maybe San Pedro.  What you think about those areas?

@Max Gradowitz I've thought about Palmdale/Lancaster but the commute would be brutal.  I already commute 90mins in the morning and 120min in the afternoon.  Those areas would set me back an additional 45mins each way.  

Wish I could buy and rent it without house hacking but then I'd need 20% down. Trying to use the FHA for the 3.5% down route.

@James M. Thanks for your feedback!  That's awesome that after some hard work you're finally cash flowing.  I hope to do what you've done!

When you bought the duplex in Long Beach did you live in one unit and rent the other? Also, how did you find your deal? On the MLS? Off market deal?

I was actually approved for a conventional loan with only 5% down. But I can only use that for a single family home. For a duplex I'd have to put 20% down. Which is why I'm trying to get a FHA loan. I'll be able to put 3.5% down and use it for the duplex.