All Forum Posts by: Matthew Brill

@Antony Munoz

No problem! You can reach out via my cell below. Or on my website just schedule a time whenever you want to chat.

You should consider build to rent. 

You should definitely start with a house hack. If you want you access equity in year 2 you will have to find a deal with value to add to get some forced appreciation. Other than that it’s a good plan. 

Is it cash flow positive after you rent out your owner occupant unit? 

Yes! And definitely a better option than FHA if you can get it.

You can also look for a 1-4 unit multifamily. It shouldn't be much different for a townhouse, you just have to be mindful of a potential HOA and their rules.

You will always be able to find a tenant. It will just come to what price (the lower you set your rental rate the larger the tenant pool). 

You will have a better shot if it is a multifamily, and really challenging if a sfr. In both my house hacks I have hired property managers. When I have inherited tenants they have found out easily before even asking. However, when I have filled vacancies they haven’t known or asked. So my best recommendation if you really don’t want tenants to know is to hire a property manager and acquire vacant properties. Realize that a savvy tenant can figure it out anyways if they check the county assessor site. The workaround for this would be to close in a trust, but if you claim a homestead exemption that can still be a giveaway. 

Have you been working with a realtor? How have you been analyzing potential properties? Have you looked at 2-4 units?

@Antony Munoz

House hacking is a great strategy and a great way to get started. It is possible in any market, but depending on the property values and rental values will determine how much you will be able to offset your living expenses. There are also variables of getting a sfh and renting by the room, buying a 2-4 unit multifamily, and renting via long term lease vs short term rental that will determine your net living expenses. Happy to talk more about it!

I agree with above posts. You can also try some tester advertisements on Facebook and Craigslist to see what kind of hits you get with rental prices. 

One thing I will add is that it is highly unlikely that you will have to pay any taxes on the rental income. Once you are renting out the rooms out you will get to use the mortgage and expenses as deductions pro rata against the income, possibly even some depreciation. Consult with your CPA on that but I know that’s the case the with multifamilies I have house hacked.