All Forum Posts by: Ryan Thomson

@Michael Saladin great plan! Way better than renting. Often an amazing investment if you do it correctly. Find a realtor that has house hacked and works with house hackers.  

Here are some resources I found really helpful on my journey:

1. For podcasts I really like the House Hacking episodes on Bigger Pockets Podcast and other channels. Here is a playlist with the best House Hacking Podcasts I’ve found: https://open.spotify.com/playlist/4A6uLsPfdWEMmJhG4TSjyb?si=743bb403548f47fb

2. Great beginners guide: https://www.biggerpockets.com/blog/wp-content/uploads/2022/08/Ultimate_Beginners_Guide_BiggerPockets.pdf

3. The Book on House Hacking Strategies by Bigger Pockets is also a fantastic book

4. Happy to talk if you want more advice

5. Connect with a realtor who understands house hacking and has invested themselves

6. Connect with a lender to see what you qualify for and how you can improve that situation

7. Go to local Real Estate meetups and learn from people there

Great questions! @Alex Jacobs

In my opinion, there is NO better way to get started than house hacking. 

It requires the least amount of down payment and therefor the least amount of capital at risk.

I would ask around (lenders/realtors) or google "down payment assistance programs in {insert city or state}. In Colorado Springs, we have a program that allows my house hackers to buy a house for $1,000 and the rest is covered with a 0% loan. The income limit is 160k! So most people qualify. See if there is something like that in your area. Then you could buy now before competition becomes crazy again and refinance when rates come down.

@Account Closed a great house hacking realtor will let you know what you need to do to be ready. Don't be afraid to reach out to that person now. They will be more than happy to help. Let them know your concern about wasting their time. They will be grateful and let you know if you are. 

One thing to consider is finding a down payment assistance program in your state/city. They often cover the downpayment with a loan that carries 0% interest. 

In Colorado Springs, we have a program that allows my house hackers to buy a house for $1,000 and the rest is covered with a 0% loan. The income limit is 160k! So most people qualify. See if there is something like that in your area. Then you could buy now before competition becomes crazy again and refinance when rates come down.

@Justin Segarra 

I have had a ton of luck with apartments.com . I list my rooms for rent here and then they put the listing on several of their affiliate sites. I get a couple interested leads a day.

Apartments.com is also where I have tenants fill out a background and credit check, set up automated rent payments, and upload renter's insurance. It's pretty sweet and free for me.

I also like Facebook marketplace and craigslist. 

I also have some nice auto messages I use to do the initial "screen" to save my time from the tire kickers and the "is it still available" annoyers.

Here is my first message:

Yes it is! We require a 550+ credit score as well as a current job paystub or a co-signer who meets these requirements. The move in date is December 7th and is a month to month lease at $650/month (not including 50-70 a month for utilities). If all that works for you, when is a good time you can see the house? and what is a good number to reach you?

Here is my second message:

I have a couple questions for you to make sure its a good fit for you. Please answer these then we can go from there: What is your Job? Only you? Pets? Move in date? Estimated length of stay? Any questions for me? --

Sometimes my first message (if they seem more serious and put a little effort into their first response):

I saw your inquiry for my house at {{address}}. It is still available. Would you like to set up a time to see it? Than I go through those two messages above.

Tips:

1. great photos

2. good description. be clear what you require to cut down on wasting your time.

3. Pre-screen with email or text before you waste your time showing the room

@Nelson Badillo its hard to know what's best for you. It is different in every area. I would connect with a House Hacking Realtor where you are looking to buy. 

In Colorado Springs, my clients will do any of the following:

- basement conversion

- garage conversions

- rent by the room

- multiple unit house hacks (house and cottage, duplex, triplex, fourplex).

- buy a property with two unit zoning and build an ADU on the back

Lots of options. Get a good realtor and talk through the pros and cons of those options. 

@John Morris it's great that you are thinking ahead and planning how to scale now. 

Getting to a spot where you can afford more house is best done by buying a starter house/house hack today. Here is a metaphor. The train is going in the direction you want. You are chasing after it. When you get to the rear car do you keep running so you can try to get to the front car? No. You jump on and walk your way up. Buying a house is like jumping on the rear car and walking to the front. 

I have a really good "scaling" video that I share with my house hacking clients in Colorado Springs. I will dm you that video. 

Hi BP Community!

Are you interested in joining a community of local, like-minded real estate investors designed to learn and grow together? If so, then we welcome you to join us for our meetup centered around creating community and sharing experiences related to Real Estate investing and House Hacking in the Colorado Springs area.

See you all at Goat Patch Brewing!

Meetup Link:https://www.meetup.com/house-hacker-mafia-real-estate-invest...

@Christopher Pride did you land on a place to move yet?!

ALSO @Codey Wendel- When looking for a good house hack I consider a couple of things.

1. 1. Will it reduce my cost of living when compared to renting?
2. 2. What is my net worth ROI on my down payment and is this better than another investment opportunity.

Your Net Worth ROI calculation takes into account the appreciation, loan paydown, tax benefits, and the rent avoidance (the difference in what you pay towards your mortgage compared to your rental situation). The total of that number over the year divided by your 5% down payment is your net worth ROI. Because you are getting the home for 5% down and hopefully holding for the long term, you will almost certainly be get a better ROI than the ROIs you can get elsewhere in the investing world.

That is what I look for. Now, how do I calculate that? I have a great calculator to help figure this out.

The inputs for the image in this screenshot are as follows:

500k purchase price duplex.

Rent each side for 2k/month (this is after you move out)

5% down payment

Closing costs: 7k

6.4% interest rate

Insurance: $250/month

Utilities (paid by owner): $400/month

Vacancy budgeting: 5% of monthly rent

Maintenance budgeting: 8% of monthly rent

CapEx budgeting: 7% of monthly rent

Even though you are negative $312/month after budgeting for future expenses your net worth ROI is massively positive. Real estate is one of the best ways to build long term wealth. And house hacking is an incredible hack to get started with only 5% down.

(see screenshot below).