All Forum Posts by: Samuel Kim

I have not tried Baselane but I did try Stessa for a few minutes.

As an Accountant, I need to be able to make Journal Entries and that is something Stessa does not have so I deleted it right away.

For all my clients we sign them up with QuickBooks Online. Yes the Class feature Cost a bit extra which is a bummer bet the support for it is amazing, and it is easy to allow access for Tax Accountants to pull the reports they need rather than my clients playing middleman.

@Samuel Kim I would suggest you find your lender first. A house hack with a lower down payment is for the person to live in. It sounds like you want to give your in-laws gifts - that is different.

Now my understanding on how many an individual can house hack depends on each individual case ; for instance is the second home close to the first ? If so it needs to be bigger or better.

As always just my opinion.

Hey @Samuel Kim - the theoretical number of house-hacks you can buy in a year is infinite because it depends on how often you're willing to move and how much money you have to spend. 

If you want to give your inlaws money to househack, just make sure that you speak with their loan officer regarding it as they will process it as a gift money when underwriting the loan. Good luck! 

Consider going a more traditional route and use hard money to finance non-owner occupied properties. Or properties in which none of the parties that are financially tied to the project will live in it. Conventional mortgages limit your growth potential and are more impactful on credit. If they need to be apart of the business, then they will need to be named in an LLC as well as yourself. There are no silent partners so down payment funds must be sourced. Lenders that do bridge financing (which will be more useful to you) look for experience as well and a project in which the investors lived in the property will not be considered.

 You can gift them funds but they'll need to qualify for the loan with their own income, unless you cosign I believe. House hack down payments can be as low as 0-10%.

Are you giving them the full purchase price?  Then yes - they can take the cash and buy the property.  But if you're giving them the down payment funds, it will have to either be acceptable to a lender as "gifted funds" or it will have to be seasoned and most likely explained.  

Down Payment:  20% or more for an investment property.  

Why not set-up an LLC and purchase the property in that entity - and then allow your in-laws to manage the house hack for you. LLCs are inexpensive to set-up (you can even do it online) and offer asset protection as well. You will need a lender who will be agreeable to lending to an LLC but they're not in short supply.

Hope this helps...

Interesting. I would talk to a mortage lender to make sure. If you are looking for the low-down payment benefits of the house hack maybe look at co-signing on the loan with them and they get it in there name. 

If you do not care as much about the low-downpayment aspects of the house hack and have 20% down. I would talk to local banks in their area and see what they can do for you. Also look to potentially buy in an LLC so you can have an operating agreement set up with your in-laws.

You can theoretically house-hack as many times as you want I think what restricts most people is the low-down payment, Fannie Mae, secondary market loans. If you get one of those loans you must live in the property for 1 year typically and some say you can have up to 10 of those in your name. Additionally, your debt-to-income will increase on each one so some will reach a limit that way. 

You can do a house hack with an FHA loan and 3.5% down. So down payment is minimal. But if you are the one paying that down payment, then you are going to need to write a letter to the lender stating that the down payment is gifted and that it does not need to be repaid.