All Forum Posts by: David Gwilt

 What has stopped you from purchasing so far?

 Would you be purchasing the property as your primary residence to house hack?

@Tim ORourke what @Chris Lopez said is a great approach. Renting out by the room or Airbnb helps you get the most for your rental property here in the South Bay, and you can't beat owner occupied loan rates especially now after FHFA reduced the amount of second home/investment property loans they are purchasing and rates/fees have significantly increased for investment properties and second homes. You could even do FHA with 3.5% down on a 2-4 unit, although you will have the upfront FHA fee as well as the monthly mortgage insurance fee. We have helped numerous clients buy multifamily in the South Bay and around Southern California to build wealth. I'm happy to chat and show you modeling on an investment like this - I'm an engineer by trade and am employed by an apartment investing firm to do financial analysis on apartment buildings they want to purchase.

The BRRRR calculator on BP may work for this. We built a calculator for our clients to allow them to compare renting vs buying and included house hacking rent within the calculator, so we have used it successfully to look at the house hacking scenario here in LA.

A fourplex would be more traditional based on what you're looking at doing, however you could do 2 ADUs. You would likely be looking at an ADU and a Junior ADU on the property. Garage conversions, depending on the setup, can be surprisingly expensive. Have you reached out to an ADU expert to get a quote for the project?

@Mark F. have you run a detailed analysis based on purchase price, down payment, projected rents, loan paydown and appreciation to figure out your likely best and worst case scenarios for house hacking and selling in 4-5 years?  We advise all our clients to run this prior to the purchase to make sure you're making the best decision for your specific scenario.

@Arlon Carroll I sent you a connection request to see if I can help you.

@Dan Schweit is spot on.  We have helped people hack single family homes and multifamily.  Usually the single family hack is by younger, single professionals since they don't have a family and aren't as worried about privacy within the common areas of the home.  You can do this pretty easy in Los Angeles given the high demand for housing and ease of finding renters for $800-$1500 per month for a single room in your home.  We have clients we have helped implement this strategy that are either positive cashflow or paying about $500/month to own a $750,000 asset!

@Pedro Cardoso did you find your place yet?  Interest rates are still at historic lows.

We are now Wealthability clients, having signed up with Provision.  We have only had a few meetings at this point, but I'll report back as I get more experience with them.  So far they seem very interested in creating customized solutions to allow us to implement @Tom Wheelwright's strategies.

Hey @Angel Rodriguez, I would run the numbers. FHA isn't always the way to go due to the upfront mortgage insurance premium as well as the monthly mortgage insurance payment. Even though the lending space has become more restrictive during COVID, there are still some lenders doing 3-5% down mortgages with the mortgage insurance included in the rate at typically only a small bump (1/8 to 3/8) above the rate for 20% down. This can often be more beneficial than the FHA loan once you factor in the MIP payment.

We have helped a lot of people househack multifamily and single family homes in Los Angeles.  Happy to chat.