Five Easy Steps to Purchase Your First House Hacking Property
Our previous articles regarding house hacking have given a lot of information. But this definitive guise will not truly be a success unless you take this information and make your dreams a reality. We have listed five (5) definitive steps that will pave your way to the right path:
- Commit yourself to the idea. If you are this far, there is an assumption that you are well-versed in the concept and you liked house hacking. The next thing you have to do is to fully commit. If you have a spouse or partner, you have to talk with them. Listen to their preference as well and decide if house hacking is a good fit for your life. If you are adept with this kind of concept, you have to commit yourself to make this a reality. You need the enthusiasm of commitment to make it through the end.
- Lay down your financing plan. A good analogy is buying real estate investment is bird hunting. If you hunt for birds, without loading your barrel, you are simply wasting your time and you will surely go sleeping with an empty stomach.
By analogy, real estate financing is the ammunition of your hunting for excellent deals. It is wise to plot your financing in order first. Review the pertinent information about house hacking financing. There is a separate article in www.rabykaylee.com . Then, try to get in touch with your trusted private lender, mortgage banker, or look at another source of money and have it pre-approved. Once you obtain the pre-approval you can start hunting for good deals.
- Know your market. While you are plotting your financing plan, you can also start to study your market to enhance your chances of finding an excellent house hacking investment. If you are a seasoned real estate agent, you can simply do this thing on your own. However, if you are a newbie at this, it is best recommended that you hire a real estate expert who not only has a deep idea of the market but also understands real estate investment properties.
What is your expectation in your study for the market? You have to start by selecting the right market. You may want to pay close attention to a community that possesses solid fundamentals, like excellent jobs, population growth, and enticing amenities. Then ask a favor from your real estate agent to show you multifamily properties that are for sale in your target community. You have to assess the present market rents for these properties. Perform the mortgage payment calculations as well as the net operating income that were discussed in the previous articles. If the figures for the listed properties seem excellent, that would be great. However, do not expect that the figures might not be as good as you like. So, somehow, you might need to adjust and recalibrate your target market. You may also adjust your preference to fit the real world.
- Come up with a Deal-finding scheme. This is the time to begin hunting. However, you cannot expect excellent deals to just fall in front of you. You have to take action and be proactive. The majority of the house hackers start with the Multiple Listing Services or MLS. This is the general database of properties that are listed for sale. Mind you, only real estate agents can access this database. Your real estate shall be able to find all the present properties that are within your personal preference. One can also initialize a filter search that alerts you anytime a new listing unit that is within your criteria comes out in the market.
The secret to success in MLS is immediacy. You have to decide on deals quickly. If it a sound deal, it surely will not last long. This is the reason why market study, as well as financing, comes at the onset. While the MLS is an efficient avenue to begin, it is also regarded as the most competitive platform. Now, there are other channels to find good deals, such as:
- Write letters. Some of the hidden treasures have emanated from a simple letter. In the event that one finds interesting property either searching over the internet or driving online, one should research for the owner and write a letter. You have to bear in mind, not all properties are listed for sale. These letters come to the owner out of the blue. Your letter might give them the idea that they wanted to sell their properties.
- Driving or walking neighborhoods. This is more commonly known as Driving for Dollars. You have to get on the side streets to unravel interesting real estate investments, call for rent or for sale signs. You can also talk to neighbors, leave your card for contact information and simply follow your instinct. Several individuals will do this for the simple reason that they want to discover hidden properties with excellent deals.
- Word of mouth. Do not take for granted the principle of “word of mouth”. You have to tell all you know the type of communities and properties you are looking for. So meaning, instead of one piece of mouth, you already have multiple mouths working for you.
- Make this dream a reality. Take necessary actions. Working in front of your computer is never enough. You should go out of your neighborhoods where the action is prevalent. If you are having a hard time doing it personally, you can hire an agent to do it for you. Effectively executing a plan, including the purchase of a unit for house hacking simply means you have to carefully maintain sound time management. You cannot deny the fact that there are some dreams which can’t be turned into a reality because of poor time management than any other reason. Individuals get so busy and their momentum is hampered.
You have to see to it that you are prepared for any type of challenge. Effectively plot your time schedule. List down “appointments” in your calendar to work on this as it is akin to a doctor’s appointment. Of course, you have to attend to it. You have to prioritize your life according to plan and its urgency.
Is the house hacking strategy the best for you? Then all you have to do is to apply these tips to make your dreams in your hands.
If you are looking to move to Dallas Texas and need an expert to help you find the right neighborhood, contact us today at ReByKaylee.