All Forum Posts by: Steve DellaPelle

@Luis Vilar Just out of curiosity, how would you house hack with an apartment, condo, or single family? Would you have roommates? Or would you cash flow on this property and use it with your primary residence?

@Jerrud King I was in the same boat as you...scared to take the leap because of the 100,000 "what ifs". I am only 24 years old and I had 0 experience in REI. After doing my homework and finding what I thought to be a good deal, I decided to pursue it. I learned so many things along the way and I have met so many different connections that only added to my knowledge. I am finishing up on renovations (I'm still so new to this and still learning the basics) and I am having an open house for one of my units this weekend.

My Craiglist, Zillow, Trulia, etc. postings have generated over 25 responses and I am seeing no trouble getting it rented out.

Just do your homework and stay focused. Don't be afraid because of the "what ifs".

I had much more success pulling/editing a template online and emailing it to candidates.

I tried using Cozy (rental software) to begin with and received maybe 1 submission but when I switched over to an emailed copy I received around 6-7.

@Zach Bagby More likely than not, your 4-plex will cash flow better than the 2-plex. With that being said, you are taking on double the work with more tenants so if the headache is worth the money to you then I would suggest 4-plex. This will also be more difficult to find but I am not sure what your market is like.

Side note, if you are living there you should consider managing yourself to maximize cash flow, but it is still good to consider this expense in your numbers just in case you plan on moving out or away from the area.

@Precious Thompson We have very similar numbers and I was pre-approved for $400,000 on FHA. I was also able to bump this up to $425,000 just by simply requesting it. I closed a few weeks ago and had no issues from the lender. You should be good, just go find a lender for pre-approval!

I would also adjust your insurance numbers! I can almost guarantee you will not find an insurance provider that will take on a multi-family for that cheap. I pay about 230/month for a 4-plex.

@Zach Bagby Your numbers look good and you're analyzing it as you should be. I would also look into what utilities you would pay for. If hypothetically you find a place that has separately metered systems that would be great but sometimes you may need to pay for water/sewage, the house electrical meter, etc.

Aside from that, finding these deals with the asking price mentioned above may not be possible in your area especially one that will be completely move-in ready with no costs for repairs or renovations. I would do a lot of research into what is available now on the market and what has sold recently to get an idea of what you are looking for.

Best of luck!

I was able to buy my first multi using FHA and I had about 4 or 5 other competitors in the mix. I think the top 2 factors working for me were

 1. I had an escalation clause to increase my offer up until a certain point so I was able to outbid without going over too much, and

 2. Owner-occupying was a big selling point because the seller grew up in the house as a kid and probably wanted to give it to someone who would maintain it properly (as Seth mentioned above)

All in all, FHA does have a lot of requirements that could hold you back but I think there are other factors you can consider to justify using it.

Thanks @Daria B. and @Account Closed

I am of course owner occupying now but I plan on refinancing and going to conventional where I will then move out of this property and yes, have the loan written as non-owner occupied.

My next property I would like to house hack again so FHA is in my thoughts for round 2.

Hello,

If I am in an FHA Loan now but plan on refinancing to a Conventional Loan...can I use FHA again after this is done?

Thanks,
Steve