All Forum Posts by: Jacob Zivanovich

Hey there,

I'm almost ready to purchase a house hack and have found some good deals right off the MLS. Trouble is that I don't yet have long-term employment in place (just moved to the area a month ago). I really want to make this happen, but I won't be qualified without that income. I have the reserves in place for the 5% down payment, 15K for emergencies, and have no debts!

I recently connected with a gal through a BP meetup and want to try and organize a partnership. I would provide the cash and backup reserves, I house hack one of the units, then she becomes the cosigner for me in order to be approved. In exchange, I'm thinking that she would collect all the cash flow and potential equity until I refinance and get the loan originated in my name... Is this a thing? Is this a equitable partnership?

Thank you!

Hey there,

I'm almost ready to purchase a house hack and have found some good deals right off the MLS. Trouble is that I don't yet have long-term employment in place (just moved to the area a month ago). I really want to make this happen, but I won't be qualified without that income. I have the reserves in place for the 5% down payment, 15K for emergencies, and have no debts!

I recently connected with a gal through a BP meetup and want to try and organize a partnership. I would provide the cash and backup reserves, I house hack one of the units, then she becomes the cosigner for me in order to be approved. In exchange, I'm thinking that she would collect all the cash flow and potential equity until I refinance and get the loan originated in my name... Is this a thing? Is this a equitable partnership?

@Conner Olsen

Hey Conner! Haven't heard the perspective yet, thanks for the insight. It makes a lot of sense to have those reserves be set on a dollar amount, rather than a percentage which might be overkill and skew the analysis. Thanks!

@Ryan Thomson

Hey Ryan, thanks for the response!

Net worth ROI, alright I'll start looking at that metric! It seems like much more of a "bigger picture" metric. I'll be putting 20% down, so that'll help my Coc.

Is Rent Avoidance the same thing as Vacancy rates? Or is rent avoidance my "rent" if I househack? 

@Anthony Swain

Hey Anthony, thanks for the reply. It's always great knowing all the different ways in which house hacking can be advantageous. I'll keep these in mind while I run the numbers. 

I hope you guys do too!!

@Jessie Dillon

Hey Jessie, thanks for the detailed answer. 

Haven't thought about a lower vacancy rate, I'll take that into consideration.

To your point about COCR with house hacking, I definitely agree that the money you are saving is a huge part of this picture that isn't exactly recorded on the biggerpockets calculators.

I'll keep all this in mind, much appreciated!

@Nathan Harden

Hey Nathan, thanks for the reply. The age of the property is a big factor, but good to know I'm on the right track in this regard.

I'm writing this post just to make sure I'm on the right track. Been analyzing deals for over a year now, and want to hear what you guys aim to achieve when house hacking. I understand that each market offers a unique perspective.

As of now, my goal is to have cash flow as I focus on CoC return.

I set aside 15% for CapEx, Vacancy, and Repairs/Maintenance combined. Is this enough?

I use the rent estimator to find average rents.

In Spokane, where I'm analyzing, the average "good deal" is around 1-2% when I put down 20% with a conventional loan. My goal is to aim for a 3-4% return. Is this a high enough CoC return?

I analyze deals as though I will be moved out of the property. I am also including the taxes and insurance while running the numbers. I will be self managing.

I'm trying to gain an accurate lens. Am I being specific enough? Or should I dive into my goals more thoroughly?

Thanks!

@Rick Albert

Totally agree. As I figured, this thread reinforced the fact that honesty will be my best bet haha. Thanks

@Steve K.

Hey man, thanks for the detailed response. Sticking with the company policy and being transparent (especially house hacking) seems more in line with how I want to go about being a landlord. You have to be strict with your rules, otherwise people will walk over that line. All the while being friendly, of course. 

Do you have an operating agreement that I could take a look at? 

Thank you!