Quote from @Vagif Musayev:
Hi everyone,
I am new to this forum and happy to be a part of the BP family. I currently have a 3 bed bath Condo Under Contract located in downtown Santa Ana. The purchase price is $465k. My goal is to do househacking and to start building a RE portfolio. I have done the calculations and the property does not bring any cash whether I put 5% or 20% down. My plan is to put 5% down and to pay the monthly difference out of pocket and to refinance it in two years when the interest rate drops. In that case the price of rent and the monthly mortgage will even up. I am prepared to pay out of pocket for 2 years given that the property is in a great location and will appreciate over the time. I would like to connect with an experience local investor to brainstorm the deal. Appreciate your attention!
I would look at 2-4 unit property and the financing on that, why not buy something that you can house hack each room, including the unit you live to decrease or make that monthly expense zero. For example, if you buy a duplex with, max loan amount of $1,098,000 (FHA) in OC. If your DTI works on that loan limit, you can buy a property with 3.5% down, and an average duplex in OC is about $1.1-$2M depending on where you are buying. If Santa Ana you can find a duplex for $1m-$1.1m.
When you find that duplex, you can house hack the unit you are living in, then rent out the other room. Let's make an example on this one for your search.
Purchase: $1,100,000
DP: 3.5% = 38,500
Payment with Tax and insurance: $8,151.11
Let's say the breakdown of the bed/bath and units: 1 unit= 2/2, 2 unit 3/2
You can live in the 3/2, rent that other two rooms out for roughly $2,000
Rent out the 3/2 to for about $3,000.
So your payment is $2,151. instead of 8151
Your condo 5% down with HOA (average $350) roughly $4,161 roughly
Rent two rooms out, and have to pay about the same amount with a higher purchase price/bigger equity build up!
