House Hacking Explained | (Step-By-Step)
Вставка
- Опубліковано 16 лип 2024
- This video shows you the step-by-step process of how to house hack! This is the best way to invest in real estate with hardly any money!
Chandler David Smith has been investing in real estate for the last seven years. He currently owns 99 units of rental real estate and he loves everything about the house hacking strategy! In this video he gives you eight steps to house hacking! He talks about walking in financing, picking the right property type, getting a realtor, shopping deals, making offers, getting your offer excepted, moving in, and repeating the process! this video will give you everything you need to start house hacking!
#househack #househacking #realestateinvesting
Get $50 off my new Real Estate Investment Course! Use coupon ( 50OFF ) Go to:
www.chandlerdavidsmith.com/co...
To learn more about a job opportunity doing door to door sales with Chandler, go to:
www.elitesummersales.com/
If you're interested o learn more about real estate investing, and you'd like to start a one-on-one mentorship go to:
www.chandlerdavidsmith.com/
Check out some other videos if you want to learn more about investing in real estate, building a huge passive income, or preparing for your own future home.
Want to see all of Chandler's real estate deals?
Real Estate Portfolio
• Real Estate Portfolio
What is a Good Deal?
• What is a Good Deal? |...
Follow Chandler
INSTAGRAM
/ chandlerdavidsmith
Facebook
/ chandler.smith.73
1. Get pre-approved
2.Find your type of property
3. Find a good realtor
4. Start shopping
5. Start making offers
6.Getting offer accepted
7.Moving in
8. Repeat
"find tenets" is in there somewhere too.
House hacking is the bomb. I’ve done it on my last 4 homes and still doing it. It’s helped me build up to $3,300/month in net cash flow
How long did it take to get 4 homes?
@@Quentlo 5 years. (I've moved every year since starting)
@@CodySteckRealEstateVideos who is your lender?
Where do you look?
@@CodySteckRealEstateVideos you do fha every year and did you refinance to conventional loans on any properties?
House-hacking is how I got started less than 2 years ago! The savings allowed me to buy my first "true" rental last week!
Good stuff bruh cant wait to do the same. How does it feel to be a landlord?
@@steavenjosey It feels less odd when you have already "practiced" with house hacking, but I just treat it like a business. I am offering a service and I have to find a way to keep bringing in quality customers.
Awesome man, I hope you the best, this would be just the beginning of your rental business
@@alexandermbot9467 Thank you!
How long so you have to live in the property
Im buying a multi right now, house hacking is the way to go.
Love it!
if you have a multiplex fha home can you rent it while living in it right away or do you have to wait a year then rent it
how’s it going?
Been a year. What's happening?
How did it go ?
Chandler this was the last push I needed i sold my single family last year freeing up my va loan and im closing on a triplex February 10th 2022 that I'm purchasing with my va loan 0.00 down thankyou so much. Were going to do this 4 times and buy our single family dream home at the end.
I’ve been thinking about pulling the trigger on this. Thanks for covering!
Ya! Go get it!
Loving your videos Chandler! Probably the most educational content I have experienced. Buying my first investment property this year via house hacking and I will definitely have to thank you when the time comes!
Chandler, I really love your videos and the energy you place in them. Always great content.
Thanks you for the video. I like how you use counter questions to make sure you are touching all the basis. As a beginner this is really helpful.
I'm so happy to see your channel growing!!!
Thank you! Means a lot!
Perfect timing on this video! I’m on step 4.
Man, I need some more liquidity to pull the trigger on the course. Currently house hacking and looking to go in on my first multi family next year to live in.
Get it man! Pm me and I can get you a deal 🤫
I'm living in a house now with a family of six but I would really love to house Jack a duplex or triplex. This is giving me motivation
chandler i can’t even explain how much your info has changed my life. Not solely you, but you have seriously been a huge help to getting started in real estate investment. Thanks man.
Hi there! Great video, step #4 is awesome!
Very good explain and creating an outline that can be obtained ..... Thank you
Awesome video man. Very helpful 👍
the color-coded books in the background are so satisfying
Awesome ive been interested in doing this for a while
Just got pre-approved for a loan and getting super psyched! Going to keep trawling through the videos again and making sure I'm making the right decisions!
Good luck man 👍🏾
It's how I got started! Wish I could find the deals I've had in the past...not so much anymore!
What’s your take on buying a 2 bedroom apartment/condo and renting out the other room?
Appreciate the video! Love the idea of house hacking.
Thanks! Glad you like it
I love CDS's energy. Priceless.
Beautiful video.
Its key to find a good realtor. Most definitely.
I am planning on starting my first journey into house hacking soon. Thanks for the great video!
How is it going?
Really informative
I’ve basically been marathoning your channel. How can we do a Q&A with this stuff.
Love your UA-cam videos and even better your course I got from day 1. Wanted to know if I could send you some deals of house hack I was looking at via through the course? Thanks brother.
Amazing content!
Do you have any books or other sources that you recommend. I’m looking to keep learning about real estate & begin investing within the next year. Thanks
Thanks so much Sir
The fact that chandler does have 100k subs upsets me. Keep up the good work man!!
Thank you! We will get there!
Great video
Thank you!
Best explanation of the House Hacking strategy right here 💯Thanks Chandler! Currently in the hunt for a multi-fam deal!
Thank you!
Why don’t you get views you got such valuable information
I bought my first duplex at 24 back in 2014 before it was called house hacking =]. I ALSO rented my spare room in my side of the duplex so thats like an ultimate hack :p. I ended up selling years later for a good profit but i do regret selling it in the end, looking to buy a 4plex next
Miss. Chanadler Bing comes to mind.
Excellent timing on the video, I just started researching this yesterday. Can you also provide a definition for cash-on-cash return?
I believe I understand it but after hearing you say it in most of your videos, I’d like be certain I know what you mean.
Dani Amsalem your annual cash flow/down payment I believe
Thank you! It’s in a lot of my other videos but I will hit a video soon that recovers it
When you do your deal analysis for CoC return, are you counting rent income as gross or net after expenses?
Can’t you only have 1 fha loan at a time? So wouldn’t you have to have enough equity to refinance the loan from fha to conventional to go again?
Probably a question for a lawyer, but can’t I intend on occupying as primary residence and then move in for a month and then decide I for whatever reason want to rent it out and live somewhere else?why is 12 months any different then 2 if the intention was to primary reside?
When you say run the numbers what are you referring to I’m interested in starting
Do you have a video to help understanding the numbers?
I just bought my first property. It’s a single family home and the basement is an apartment! What are suggestions for insurance? Can I get a normal home insurance policy or do I need to do some kind of variation?
Should I look for brandnew properties for house hacking? or maybe consider taking those old properties or maybe foreclosures?
I have the knowledge on how to house hack, do you have any video on how to analyze the home?Great content btw 👍🏾🔥
Yes, multiple on my channel but I will always be making more
I literally have no idea on real-estate vocabulary such as “cash on cash return” but I still watch the video as if I know 😂
Hello Chandler, Im still watching and learning from you everyday. I have a question regarding hacking. I currently have a triplex with a V.A. loan. How do I house hack from here? All lenders are saying they dont believe i am moving. They want 25% down and 6 months in reserve on a multi unit property. They say they dont believe i am moving but have no issue believing me if i get a loan for a single family home. Im getting frustrated because i am a disabled veteran and feel like they are trying to take advantage of me.
FHA will always have a pmi in the loan unless you refinanace to get out of the loan. My suggestion is to do conventional 5% down, so you can get pmi removed based on loan balance or get appraisal to get pmi removed after 2-5yrs of keeping the conventional loan.
How can we make sure our numbers work? Do you have a video on “the numbers “
Always get a REALTOR! Thanks Chandler for great steps for someone to get started investing in real estate!
QUESTION: After the first year, will that first property affect your debt to income ratio or negatively affect your ability to get another loan?
I'm interested on this too
It will negatively affect your dti if you don’t pay taxes on the cash flow. If you do pay taxes on it, it will boost your income. Also you can only get one fha loan at a time so you would need to refinance into a conventional so you can house hack again
Yes, I am currently house hacking (third month in) and have learned a lot in the process so far. The rental income WILL help you out, however you must have 12 months in rental income flowing in before they can consider adding that income to yours, HOWEVER even so, only 30% of the properties rental income can be added to yours after a year has passed. The real challenging part will be trying to buy another property through a bank via conventional financing because even though the rental income will help you out, your debt to income ratio will grill you from the first property so either you'll have to find another super high paying job or you'll have to really save a lot of money in order to purchase your next property. I've made up my mind and have determined that I will be pursuing hard money lenders for fix n flippers or brrrr properties with hard money as well, since that way those kinds of lenders are more focused on the deal and investor instead of your debt to income or even your credit score.
What about finding someone to rent the extra rooms/units?
if you have a multiplex fha home can yiu rent it while living in it or do you have to wait a year
Any discounts for the course?
Maybe someone can explain this to me.although he said cash on cash a million time, I don't understand. So 15%of the 25,000(his example)=3750.and over what period should you make this amount
Can you buy a fourplex 3 hours always from your primary home and live in the fourplex, rent out the rest? Main job is near the primary. Second house is where my business will be.
Awesome video. I came pretty close to making an offer yesterday but I'm a bit nervous on the situation. The numbers make sense, but I would be submitting a curb offer without actually being able to see the property as it is currently occupied by two tenants (duplex). I understand that this is where the contingent inspection comes into play, but I am curious, what happens if I don't like the deal after the inspection? Is this just a loss of the inspection cost on my part and move onto the next one?
Just go for it
If you did put in work in the property and it appraise in matter of 6 months and you cash out refi, do you still have to live in the property though?
Any advice for Canadians? Or do you know any great investors like yourself that are Canadians and do the same thing on UA-cam?
If you do an FHA 3.5% down. How long before you can rent out the home?
lets say i get a realtor, do i pay the realtor as a buyer or does the seller pay them commission?
I’m 20 years old and have just started putting offers in on a few duplexes in my area. Just be careful, it’s not just the down payment. Like he said at the end of the video you’re going to pay a good chunk in closing costs as well.
How did you get started? I'm looking into House Hacking and I am overwhelmed but I have no idea what I am doing
Congrats on being in the position to look at places! I am closing on my first house, a duplex, next week. I'm paying just $7500 down, but with closing costs, I'll need to dish out around $14,000. YIKES!
@@Batt_Mrown Search online for realtors in your area! As mentioned in the vid, realtors are free until you actually make your purchase. Search for someone who has experience with multi-plexes. Make sure you're in an area with a good renter base (like a college town)
Did you start house hacking!
I want to do this but Denvers market is crazy expensive
Does anyone know of any videos that go more in depth on how to run the numbers for this kinda thing to make sure they work, like a walkthrough or something that goes more in depth. Sry for the dumb question im new to this kinda thing
What does he mean by cash on cash return?
My first home was a 150k town home, I got a 1st buyer grant so 15k toward dp and closing cost. Initial investment $0, lived for a year and rented out.. then bought another. at the time,I had no idea what I was doing .. now I realized I was house hacking
I read shoe dog too!
I love being wealthy
After I get my first property what I have to do to get my second property what are the steps what kind of loan are out there
Just repeat. You can do the same thing
Pls explain with example
But if you have a house under FHA loan, you can’t get a second one with an FHA, right? We are not planning on selling our main one for now, anyway the market is horrible right now for sellers. 10/2023.
What happens when you have more then one property and more then 1 of the tenants stop paying for months and you cant affors to pay for everything?
I want to start house hacking, any advice?
Chandler, how does one convince your wife to move after a year of living in a place? Getting married next year I'd like to do this twice before before we go for a single family home (thinking a duplex to start then a 4-plex). I'm just worried she might not be inclined to moving that much.
Can you show us the numbers with a 3.5% down instead of 25% return?
Will do
Please tell me the steps on how to get people moved in
How else can I house hack? I have a home with 2 kids and my wife. And I don't want to keep moving. How else can I house hack and get low interest rate ??
I'm 20 still in college , trying to educate myself on real estate. I'm hesitant to get into it now ,I've been hearing that the housing market is going to crash .
What's your take on It if you don't mind me asking.
Will be closing on a triplex and will be taking over existing leases for two other units looking at 13% ROI for year one after some mantience and slight renovations. Year two I'm projecting 64% ROI. Know your numbers. Know what your buying. I'm 20 and will be starting college online and working full time.
In my market it won’t crash and even if it does it will be years down the road. Every sub market is different than the market as a whole and if you buy right it doesn’t matter either way
Do you ever mention to the loan officer, the bank or the agent that your planning on house hacking?
It doesn't matter. But what momma doesn't know won't hurt her.
I see the book rich dad Poor dad in the background
Sorry but can somebody explain the 15% cash by cash return please?
You do 3% down first time house buyers
You should throw in examples with numbers to help visualize this… 15% return?
Is + cash flow while living in the house a necessity ? Or atleast to break even cause it wouldn’t be considered house hacking imo
I think so because stuff is going to break. I would take the cash flow and put it in an account and not touch it until you need it. Eventually you’ll have to do maintenamce and repairs and if you have three or four units, the cash flow helps if someone moves out and you have an empty unit for a while.
Hi Chandler!
Can you make a video on this topic please? If I make $60k a year and buy a $100k multifamily house every year, after buying three houses my income won’t support me to get another loan. What to do in order to keep buying more propeeties?
Thanks
What a great question
The properties you purchase will count as additional income if they make profit
Adam Gottschalk So if I buy a property that brings $1500 a month, means I can show $18k income every year and that will help me to get another loan?
Shujayet Hossain yes the rental income you receive from other properties can be used as income on a new loan. Over time, this will allow you to qualify for bigger loans! Do your research though as you shouldn’t take a person in the UA-cam comment section for their word every time.
You rental income shows so your situation will get better not worse
some fucking wonderful content here
I'm so lost where to start ... as a 17 year old.
Would this work in Hawaii?
Can I go 50/50 with my 18 yr old old daughter and buy a duplex where she lives in one side and still pay 3.5%?
On FHA loan Is it legal to Rent part of house to a Family while living in small room in the same house ( Can the Tenant Kids allowed to go to Public School with that ) ?
I know I'm late but... from my research, as long as you're living in the house for atleast the first year it's fine. Tenant children should have no issue attending public school. All children in the country can attend public school, even children not in the country legally. Not to turn this political, just saying that to make the point that there should absolutely be no issue there.
How can I contact you
I don't think he under stands what pumped up is?
On a 30 year mortgage?
When he says about a 25% down and a 15% return he means when you sell the property again you will get a 15% return ?
I’m also confused about this
No 15% cash on cash return
What happens if I house-hack a home, use it as my primary residence for 2 years, and then decide I want to move and rent out both units on my property? Can I get another loan for my primary residence? Do I have to refinance or something and disclose that it's no longer my primary residence?
Lol, should have listened to the whole video first. Just saw that you said after 1 year you can move out. Is there anything else to be aware of in this situation?
ThrifTecher I’m not sure if you can have more than one FHA loan at once. So if you move out, you may have to either switch your FHA to conventional or put a bigger down payment on the second property in order to get a conventional. There are a few exceptions and I would look into it more to be sure if I was you.
Watch “4 Ways to have 2 FHA loans at the same time” -Win the House You Love
I forgot to mention you’re going to have to increase the value of your home through forced appreciation if you’re going to convert from an FHA loan to a conventional since they require at least 20 percent equity I believe. A property that needs cosmetic repairs would be ideal for this. But I’m just a guy in the UA-cam comment section so so your own research!
Nope, you just leave it with the same loan and You can go and get another
Chandler cash on cash return smith.
It is a great method but those numbers are not totally accurate. 3.5% of the loan is only a portion of the cost it takes to actually purchase a home or multiplex. There is still transfer taxes, title company payments, earnest money, home inspections, broker fees, realtor fees, ect. It was roughly $12,000 JUST to cover the closing cost of my 550k luxury property with lock off. Total to get into the property was close to $50k and the property cash flows about $1,250-$1,500 a month. Still worth it for sure but be ready to drop the cash.
What if you don’t have the 3.5% down payment?
Then it’s time to save up for it!