All Forum Posts by: Tori Trent

Bill's point is dead on for tax purposes.  If it was bought as a rental and you've never lived there, with a 3% interest rate and close to cash flowing with a PM, I'd hold it.  Rents go up over time and you are unlikely to get interest rates that good for a long time.

with the current interest rates, it would be a lot harder to find a place that cash flows and long distance rentals are not always good.

If you lived there 24 months before making it an entail I’d sell and take the $100k tax free. It will take that property years just to make the $20k in taxes that you’ll owe if you keep it. 

If you lived in it less than 24 months go ahead and keep it. You will not retire or grow rich off cash flow, it will be the appreciation and eventually the loan payoff.  Pretend you magically raised rents $100 (like next year.). Is it suddenly a great rental instead of a bad one? No, it’s  exactly the same rental just one year from now. 

You're definitely thinking about it the right way! I respect that you are doing it with kids, too many people use that as an excuse. I am house hacking in an expensive area myself, just north of Boston. Obviously I'm not super familiar with all the laws and regulations in your area but what I love about house hacking is it can be as creative as you want it to be. 

Could you find a spot with an ADU? Or the potential?

I know someone who rents an RV in their backyard. You could also create storage spaces, like a garage or basement and rent it out on neighbor.com. Could you do a large multifamily? We bought our second one to grow into, it has 4 beds in our unit. We rent the bottom unit which is a 2/1. 

Great ideas, i've stayed in some cute campers on air bnb in some expensive markets. In my expensive market I've seen folks get creative by renting gardening space, Ie raised beds,some tools. They tend to target apartments in walking distance of their single family home via flyers and craigslist.

@Tori TrentThanks! and no relationships yet with hospitals/agencies but I would like to. We have have been lucky to get all our business on furnished finder, Nurse facebook groups, and also listing on airbnb for 30 day+ stays for the one we do not owner occupy. And yes, I now target 1 bed and studios specifically for mid-term rentals. Once you get in to 2 bed and 3 bed units you can likely get market rents depending on location or you will have to rent each room out and most of the time nurses want there own private space with out sharing bathroom/kitchen but Ive heard of people having success with it!

@Tori Trent

I like the way you think! Daylight basements can be a great option. 

In Reno, NV we have newbuilds that're called "Next Gen" that have a separate in-law suite (w/ out a stove to adhere to SF zoning). 

This is an awesome turn key option. Curious if they're in your area as well. 

@Tori Trent nope no issues running it for the last 3 years and have been booked! at most 3 weeks vacancy. Here are links to two of them we run in our area. First one is the primary residence and the other is another building (5 units) Im converting to all mid term rentals.

https://www.furnishedfinder.com/property/289744_1

https://www.furnishedfinder.com/property/558732_1

Hey @Tori Trent,

It sounds like you have a great plan in mind! House hacking and buying a new primary residence every year are great strategies to ensure you are consistently growing and profiting from every purchase you make!

I would suggest that you also consider seeking out homes with assumable loans!  In my opinion, purchasing with an assumable loan is the most powerful strategy available for any primary home buyer in today's market!  The biggest hurdle right now is interest rates, it is extremely difficult to buy in a popular market and actually make a profit out of the gate.  

BUT!! When you buy with an assumable loan (all FHA, VA and USDA loans are assumable) you will buy with 2%-5% interest rate that will give you a much better chance to profit when it becomes a rental once you move to the next one! We bought a $400,000 home with a 3.08% rate and are paying $2,157 including escrow compared to a $2,950 payment if I took out a new loan at 7%! Which payment do you think would be easier to cover with rent? AND this doesn't include the increased principle paydown I also have with a loan that has already amortized for 2 years!

I have a blog post that dives into the powerful savings in lower mortgage payment and increased debt paydown when you buy with an assumable loan vs a new loan at today's rates!

https://www.biggerpockets.com/forums/922/topics/1175338-maxi...

If you ever have any questions about how this works, feel free to reach out and I would be happy to share my experience and knowledge!  I wish you the best on your journey!  Take Care :)

House Hacking is the way to go! Great to see someone else looking to do it with a family. I also have 3 kids and during my search I looked for a-lot of the opportunities in properties that others have mentioned above. We found a single family with a finished garage that had an in-law suite above the garage with its own private entrance and a kitchenette. We bought in 2020 and updated the kitchen and added a bathroom and now rent the in-law suite to traveling nurses! Keep searching and you are sure to score a deal, good luck!