All Forum Posts by: Kyle Calica

Haha! I love this! I'm explaining to some of my friends why I'd rather take out a bigger loan to get a multi-unit rather than purchase a SFH with 20% down in the Bay Area.

Okay, so over-leverage is not borrowing from the bank too much - it's paying it back at such a fat payment which you can't afford. 

So if I'm house hacking and pick stable tenants - and have a decent job which I can still pay my mortgage, then that's fine and I'm not over-leveraged?  

I keep seeing the words "over-leveraged" meaning you bought for a low downpayment, correct? 

Say if I'm house hacking and bought for a low downpayment, how will being "over-leveraged"  screw me? 

Is it only job uncertainty in my renters, and my own, which can hurt me financially? 

My rent currently is $1750 but the highest I've paid is $2200. 

So I'm expecting with a 4plex it'll be high as hell, but I'm not opposed as long as I can get my monthly costs down then I'm open to it. 

Yeah definitely, if @Chris Mason can open my eyes to how real estate finance works that'd be great. 

didn't realize he was a lender, still a newb here! 

But how much was the 4plex and the monthly payment for it, if you don't mind me asking? 

For my age group, I am paid pretty highly plus I work night jobs and side gigs just cause but I'm still trying to figure out my price point. 

So far I've just been using the highest rent I've paid as my benchmark. 

Most 4plexes seem to be $700K to $800K and I don't know if that's possible for me yet .... 

@Chris Mason  

What would be the suggested price ranges you would say are best for this, or monthly mortgage I should be aiming for when trying to house hack a SFH?

I was trying to put in a downpayment below $20K (more like $12k downpayment max). My lender actually approved me for low down payment conventional loans. 

But I'm thinking I may be hoping for something waaay too low, which doesn't exist in our market in the East Bay.

* that was another thing I was considering, doing all the rehab myself while I lived in.  

I am trying to find out the same information! 

I recently put a bid into a home and lost. 

My plan was originally to use my FHA or a low downpayment conventional loan to get a house with a spare bedroom and a detached garage which could become a ADU unit - Oakland's only restriction I can find is that one ADU unit per lot.

But the market is competitive so it is hard. On the bright side, rents are also pretty high so I'm assuming $850-$1200 per bedroom when I am able to get a home. 

Hi I recently lost a bid on an East Oakland home. My plan was to get the detached garage into a ADU unit. and then rent out the second bedroom. However, doesn't seem like I would receive free rent, just cheaper rent - which might still be worthwhile in the Bay Area.

My question is: 

Can house hacking  still be done in this market - as most people have told me not to bother and most money would be in home flipping in this seller's market. 

And what are your stories of house hacking in the Bay Area?