Problem with house hacking at this point is qualifying with DTI to make payments on the 97% LTV. Right, 3% down on a 300k house is going to be around 2500 a month. Then, you need to buy somewhere where renting out that same property a year later is going to cover your expenses at least, so it'll need to rent for 2500+.
Even if you lose 500 a month once you rent it out the appreication over the next year that Biden is in office is going to be crazy. I love bidenflation! Best thing ever for my pro folio!
@@jim20031 you do know that most of the spending happened under the trump admin right? And it’s irrelevant as long as rents inflate at least the same rate.
@@christobaryes, but we also were not buying oil (we fracked our own) and Europe wasn’t buying from Russia… they bought our oil. The runaway national debt over the past 4 years speaks for itself.
As a beginner just interested in getting into this field this gave me some hope. In the next year I’d love to get my first property to start understanding this journey since I just became debt free last year
If you’re debt free you’re ready! Use a first time buyer program and you can buy a home for just closing costs, appraisal and inspection. After a year or 2 depending on the lender, mine only actually needs 6 months you can rent it out. After this the bank will count around 70% of the rent towards canceling out the mortgage and you can get another mortgage. Rinse and repeat. I’m about to buy a fourth house this way. I will say the bank can/eventually will mess with this plan. Just wait two tax years so the 1099 income from rentals counts as legitimate/consistent income and then buy again
Would LOVE a house hacking book!!! Question for housing hacking, what if you buy a property have a bedroom that’s yours for a year but not be there and have your parents or in-laws live there and pay the mortgage. Then take that money after a year and buy the next house the next year? Is that a smart investment?
No no, just the first house :) they rent a duplex and I would love to be able to control their rent costs. They are retired but rent keeps going up. We don’t need a house but own one anyways. We travel 99% of the year :)
Instead of tapping into external financing sources or depleting your savings, you can leverage your 401k funds as a down payment. As you repay the loan, every dollar (principle and interest) flows back into your retirement account, turbocharging your nest egg while simultaneously building equity in your property. The key to success is making sure the property cashflows day one.
Perhaps I'm thinking small but "Partnership" is a 4 letter word in my book. I'd rather aim lower, use traditional bank financing and grow slower than take on the liability of a partner or investor. Control and autonomy have been absolutely priceless in our experience.
Another option is buying at a deep discount and then working with a local bank who will fund 80% of the as is or arv value. Ive gotten several with less than 10% of my own money
This video is about low to no down payment options. Seller financing are hard to find already but with low downs it would be close to impossible to find.
When it comes to the world of investing, most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance
The thing is NOT EVERYONE WANTS OTHER PEOPLE IN THEIR HOUSE especially if they have A SPOUSE and CHILDREN. House hacking is okay you are single What are other ways to start REI when you already have a primary residence and you don’t feel comfortable having other people around your children?
Simple, you snag the house next door, the one you've had your eye on (you know, the Joneses' place), just a few doors down. You decide to rent out our current home. No need to disrupt the kids' schooling or change your commute-it all stays the same. But now, you've got two houses, and the new one came at a steal.
How about farm home administration for moderate to low-income people in "rural" areas of the US? Many times, downpayment and interest rate subsidies to help you get started.
