All Forum Posts by: Nick Riccio

Miled - This is a very common strategy especially if you know you plan to get out of the loan in the short-term. If saving cash is important, it's not a bad idea. I'd just make sure that it still works for your numbers, and will greatly benefit you. If both of those boxes are checked, I think it's a great plan.

Glad to hear you're taking the plunge, Brian. Great questions and a ton of insightful feedback already.

I'll echo from a personal standpoint and as a lender. As an investor, I've closed 3 multifamily house-hacks in the last few years in Boston, most recent being end of 2021.

In addition to everything people already said - another is to look off-market. I know that's easier said than done - but let everyone know what you're looking to do. Push your agent/lender to use their network. Deals are out there with sellers willing to accept FHA, but it's a numbers game. Also - does your state offer a state program? In Mass - we can do 5% conventional on 1-4 units if the buyer meets certain requirements. This is state specific, so I'd also look into that. Lastly, make sure your agent is confident in FHA and can sell it. It sounds like they have a negative outlook, which probably isn't helping your case (just being honest). Hope this helps!

Mohammad - I think you're spot-on with your logic and IMO a good agent is really important right now that works in this space. We help a lot of house-hackers/investors on the lending side, and see both good & bad. It takes a really good agent to help get the FHA offer accepted as there is a lot of education required for most sellers/selling agents.

For recommendations - I'm sure there are a lot of great agents on here with this experience but I know @Lien Vuong is top notch.

@Collin Miller High Cost Of Living Area

@Erin Anderegg definitely a common hurdle we run into personally and with our clients. The goal will be to refinance into a conventional loan. 

Depending on your income - Freddie Mac Home Possible might be an option, as they allow high LTV. Also, some states have state programs that will allow for higher LTV's. I'd look into your state program and see if they have an option.

@Collin Miller if done right, I don't think there are many cons. You need a place to live. If you can turn that place to live into an asset that costs you nothing, or very little? MASSIVE win. 

@Jeremy Nault is absolutely right, there's no better way to get started. Especially if you are in a HCOL area. My wife and I have been doing it in Boston since 2018 and have been able to live for free all this time and build a portfolio worth over $3.5M all using low DP options. 

I think the only "con" is you will need to get used to living with tenants. That is definitely a learning curve. 

@Derrick Van Dyke shouldn't be a major issue, but need to be able to occupy within 60 days. This is pretty common.

I'd second @Kushaal Malde and unless there is a qualifying reason for using FHA, I'd look at other options.

@Mary Ciccarelli Congrats to you and your boyfriend on getting started! Market is absolutely insane right now (basically everywhere, lol). My advice, have your lender fully underwrite you upfront, talk about appraisal-gap strategies (incase of low appraisal), and tighten contingencies and timelines. If you're fully underwritten with an approval, while you're not "cash", you'll be much closer and much more desirable. 

Hope this helps!

@John Barton You absolutely can with a multi-family (one of the biggest benefits to house hackers). Single family you won't be able to, as technically there is nothing to rent. If you rent rooms and document it for taxes, after it's on your tax returns for two years you'll be able to use that income in future as "boarder income" 

@Nico Dandini great questions. I think a lot of that is very subjective. I've done 4 house hacks in Boston and each is very unique. 

My goal (again, personal) is to make sure the property will be a good investment when I move out and it becomes a "true" investment property. I've done this through value-add (major renovations). Turn-key properties will be a challenge, but not impossible. 

My advice would be to find something that'll be a good investment when you move out. Also, try to leverage low-down payment and try to have as much reserves left over post-close (I know can be a challenge when starting out). 

If you stick to that criteria, I think you'll be in a great spot. Happy to chat - love seeing other fellow house-hackers in our area!