All Forum Posts by: Waylen Herdman

@Ronnie Hutchinson

Great information, thanks!

@Frank Wong

The only reason I haven't totally abandoned the idea is that I brought it up in passing and wasn't a full fledged conversation. I may just pose the idea again and if he resists, move on.

@Ronnie Hutchinson

Even if we're both on on mortgage with an FHA loan, only one of us needs to actively live in the property?

Don't think any of my other friends will be too interested. I'll ask around.

I'm itching to get into real estate by house-hacking but I can't afford anything by myself here in Nashville. I can afford some surrounding areas but I don't want to live in these places. My plan is to get a good friend who is also wanting to buy a house (at least that's what he's saying) to join in on a MFH house-hack with me. We would both be on the mortgage to qualify for house in the 200k-250k range. I was pre approved for a 5% conventional primary home loan in the past and he has zero debt whatsoever so I think it wouldn't be terribly difficult to qualify for this, and even if we weren't, we could just use an FHA loan.

I briefly brought it up a few days but he didn't seem too interested. The only issue he posed was that he just entered his first real relationship with this girl, they've been dating for 3 months, lol. He said that may "mess" things up. I didn't have a chance to rebut before his GF came and the conversation just sizzled. I want to bring it back up and actually provide numbers on WHY it's smart for us to partner and how we can live for free or even make a few bucks per month. If he's really planning on buying a house he'll be spending far more each month than by partnering with me.

So here are my questions:

1) If we're both on the mortgage with, let's say, a 5% conventional primary home loan, do we both HAVE to live in the house full-time or can just one person (me) live there full-time? I know that if he has his mail sent to the house then there will be zero issue even if he does eventually move in with his GF but I want to give him peace of mind.

2) What's the best way to show the numbers to him? Just pull up a possible MFH on realtor.com and go through the process of analyzing a deal on paper? Any tips on this as I don't want it to look like I'm trying hard to sell him, y'know?

I want him to know that this is not only a viable option but a financially prudent one as well.

@David Flores

Checking in to see how this panned out. I'm looking to do something similar with a friend. Any pitfalls or regrets on your end?

@Tim Bergstrom

I'm somewhat in the same boat. I live in Franklin but have been eyeing Louisville for a while. The difference is that I would want move there and house hack. I'm actually heading up there for a little impromptu vacation this weekend! Super excited to look around! I've also heard good things about Iroquois and Shawnee Park as the next up and coming areas from people on here and the Louisville subreddit but take that with a grain of salt.

@Tyler Bodi

I actually have a co worker who own a STR rental in the Highlands. That's a possibility for sure. Getting into MFH within my budget seems more doable in Louisville as opposed to Jax but I think it's going to come down to which city I like the most. I'm planning a visit to both here in the next month or two.

@Luka Milicevic

I look at SFH in Nashville periodically but with my budget there are a TON more options in both Louisville and Jax. Plus I've grown up in this area my whole life so I think it's also time for a change of scenery. :)

I know most people house-hack with a MFH but are there any pros to house-hacking a SFH that you can't capitalize on with a MFH? MFH are harder to find than SFH in most markets, especially with my meager budget. Is it worthwhile to house-hack a 3-4 bed SFH if it means I'll get my foot in the door with REI faster (assuming the numbers make sense) or is it beneficial to be patient and wait for a MFH that matches my criteria?

I was originally looking in smaller cities in TN for properties but have come to the realization that I don't really want to live in a small town in TN. I want to live in a more metro area, I've grown up in suburbia TN my whole life and would KILL to be able to bike/walk to a restaurant or bar from my house and Nashville is too expensive. I've come to the conclusion that Louisville and Jacksonville are my front runners and it seems that Jax has higher rents compared to Louisville.

@Eric Yow

It looks like the first deal will have to be my only option. I called my lender and the pre approval was only for a MFH. I'll shop around to see if I can get a pre approval for a SFH but I doubt the terms would be as good. House-hacking a MFH seems my best option. I may just wait for another house to pop up. I'm a little weary that this first deal has been on the market for over 200 days.

@Tony Hightower

I imagined there would be some rent chasing in this part of town. I was hoping that since it's close enough to APSU I could find some students to rent the other side too but I just realized the APSU semester is starting real soon and I imagine 99.9% of students have already found housing. I may just wait it out and wait for another distressed MFH to come on the market in a better area. I'm a patient person :). 

@Jonathan Bombaci

I should've made my intentions more clear on the second deal. I would absolutely BRRRR that deal. I also would only be putting down 3% for a conventional loan. I understand that's pretty uncommon and I'm double checking with my lender to 100% sure. I originally was opting for an FHA loan but my loan originator said my credit score was good enough for a 3% conventional loan but that was for a MFH. I'm not sure if my pre approval only includes MFH or SFH as well. Waiting to hear back.

@Kevin S.

As I told Jonathan, I'm going to double check with my lender but I know FOR CERTAIN that I have a pre approval for a 3% down conventional loan for a MFH, not sure if that would work with a SFH, don't know why it wouldn't.

@Eric Yow

Deal #1 is located in the heart of Clarksville by Norman Smith Elementary. I would say it's more of a C neighborhood, definitely a lower income than the deal #2. I think my grading of neighborhoods may be skewed by living in Franklin my whole life. I wouldn't mind living there, honestly all of Clarksville is kind of meh to me. I would be doing it purely to get my first deal under my belt, learn and hopefully build some momentum into my second deal whether that be Clarksville or somewhere else like Jacksonville/Louisville. 

Deal #2 is located just slightly northeast of Dunbar State Park. Seems to be a better neighborhood from google view but I won't be by the area until later today. What are your thoughts on these areas?

@Geordy Rostad

With the first deal I'd be able to pick my own tenants as well I just think they'll be lower class. If I were to house-hack I could probably handle it but now I'm leaning towards just finding a place to rent out and live where I currently do. I would be moving 1 1/2 hours away and I have more job opportunities and friends where I currently live. Plus it's not exactly a city I'm dying to live in. Maybe if I were to move to Jacksonville or something then I'd consider house-hacking.

I think it's just me being overly conservative on the ARV.