All Forum Posts by: Kacie Benson

Did you end up house hacking in SD? 

Also in SD looking to buy and rent out a room. Wondering if I can use the FHA loan, rent out a room(s), then buy another rental property with other savings? Rent out that property. Or is it best to put down 20% on one property?

@Sofia Sharkey so the rents from your tenets were enough to pay for your rent? Or it was just a good enough cash flow to help continue to save? That's great! That's exactly what I want to do.  I would love to hear more about the process and how you found the right spot. 

@Ruth Blue

First of all congrats!! I would love to own a vacation cabin in TN. So you are renting where you live and then you bought for Airbnb. How did you figure out the numbers? Also, will you be able to use the FHA loan in the future?

@Tom Kastorff 

Thanks for the reply and info! Super important to check for Airbnb status. I am looking for long-term renters since this seems to be more consistent. For a regular 2br/2ba, you can still get cash flow for long term renters but the place may not be in the vacation spots or it doesn't have the same feel. The airbnb would be great but yes more upfront costs for a better place, furniture and the risks of the laws. 

Just a thought I've had for a couple of weeks now. 

What if I used the FHA loan and paid the PMI for a condo where I live and then get a rental property? I would have to take HOA's into consideration but . . .

Buy $350,000 as first time buyer with 4% down = $14000

Rent one-bedroom for $1,000 

Payment is $2435 - roommate rent Payment $1,000 = $1,435

Once the dust has settled I would buy a small rental property. 

Buy $180,000 with 20% down = $36,000

Monthly payment = $1223

Rent the 2br for $1600/ month

Profit= $377

The monthly payment for two properties = 1,435 - 377= $1058

My monthly total payment = $1058

My current rent = $1125

So I would be paying less than I do right now on rent to pay towards two properties and also be building equity. I included PMI's and HOA's but I'm sure my math is too conservative. Even if my cash flow was still less on the rental property it would still be worth it? Might be best to have PMI's but bigger cash flow. Can you buy another property after using an FHA loan? I would live in the property with the FHA loan. I would be spending $50k + but that is okay since I have saved up for this.

It's difficult to know what to do first. Buy my condo I will live in with 20% down or 4%.. Do I spend all my money getting to that 20% down or save some of it to buy the next prop. Or buy a rental property with what I have now and start cash flowing but continue to rent and subtract from buying the big one. I know house hacking is the best. Plain and simple. 

there might be a law against this? 

Thoughts?

@Tom Kastorff

Yep! I looked at a couple of 2bed/2bath condos with HOA's up to $500. I need to find an area not too far away that still has low HOA's so that I can cash flow more. If you know of any area's? Hemet? I'm just seeing 55+

I can always look at 300k places but think it would be best to use that down payment for a house hacking condo of my own. 
 I just resigned my lease since I cant figure out which direction to go. 

Thank you 

@Mark Gliebe

Hi Mark, 

I currently live in Little Italy in San Diego and love it. It's been a neighborhood I've wanted to live in for years. Super expensive to buy but my rent price is below the average and I get great amenities in my spot so it would be hard to leave. 

I am looking at areas in SD, Palm Dessert, Temecula. I also looked at places that are up and coming like Nashville (I'm a little late), Reno and Raleigh. All far away. 

@John Lim

Yes! Exactly. I want to just get into the game! I've been looking at 200k and lower in palm desert since it is still close by. High HOA's though. I can't seem to get away from HOA's here.

The only thing is it takes away from your savings for your own home. So I might buy my own condo first with an FHA loan and then look at investment property.

Thank you, Derek! 

Yes I'm starting to think the best thing to do is to start house hacking and continue to save for my first rental property. Its hard to know when you aren't sure where you may be living for the rest of your life. but if you have a property management company then it should be fine to be farther from your rentals.