My tenants know I'm the owner but they go through our property management repairs rent etc. I just get my rent rolls every month after deposit I love it and there 24 hour maintenance crew is worth every penny of there 6%.
Fantastic video with great counters to all of the downsides of house hacking. Your channel is an invaluable wealth of knowledge and I greatly appreciate you sharing your experience with all of us!
House hacking is great I own a triplex that I pay 200.00 to live in with property management in NC. It has built my reserves to 2 years of mortgage payments im buying another in February in a year they'll pay for our dream home single-family 1 more house hack to go.
Hey bro can I message you to ask you how you did it? I’m 20 looking into starting next year and would really love a one on one on somebody who has done it successfully
House hacking is great, I pay roughly $500 of my mortgage while living in Los Angeles due to renting out my second unit and renting out an extra bedroom in my actual home.
That’s awesome, I want to do something similar. What part of LA are you in? I’m worried that I might be limited to rough parts of LA for the numbers to work. Have a great day.
@@ImOzify I'm in South LA, a couple of miles south of USC. It's definitely not a "good" area but there are worse areas. But you just have to run your numbers and see what you can get.
Most of these problems go away by just hiring the services of a rental management company, they deal with the headaches for a small cut of the rental income. As I'll rarely be home anyway, and mostly just need a residential address so I can stop putting my employer as my home address on financial documents (Trucking industry, OTR) privacy is not really a concern.
That's right! And I'd recommend you check out a service like Hemlane (www.hemlane.com/). I'm not an affiliate, just spreading the word. They offer a full-service tier at $60/month that'll take care of just about everything for you. It's not quite full property management, but it's really all you need if you're able to stop by the property a few times a year. Check it out!
Same, flatbedder here looking into house hacking to meet the need of a residential address without just wasting money on renting something that’ll be unused
Great video - banks will absolutely sell you more house than you can reasonably afford, though, so make sure to be aware of what’s appropriate for you.
Definitely do not be a landlord in LA or CA in general. Broken toilet is nothing compared to dealing with tenant issues in CA. I kept my elysian park home vacant during covid lockdown. Sold the home while I was in Las Vegas. Best decision ever made. Bought 2 homes with sub 3% rates in Las Vegas. Sitting on massive equity even today.
But single-family homes aren’t subject to rent control in LA or CA. You missed out on tens of thousands of dollars of income with that empty Elysian Park house! Primo neighborhood!
@thejonschwartz walking distance to dodgers stadium and massive park. Awesome area. Had I stayed I would live there. But as a rental my Vegas house is near allegiant stadium, put only 5% down on 300k house, now worth $420k. Much better returns as a rental. House that I'm living in bought for 360k , now worth $460k in a guard gated golf course community. Bought both before prices went crazy. LA still have eviction moratorium but I think it'll become permanent. i grew up in LA and it's shame what LA/CA has become
I would not recommend you buy a house hack through a business entity. Later in your career, it’ll make sense to buy property through an LLC, but not if you’re house-hacking the property. Hiring property management is a great idea if you don’t mind trading some cashflow for time freedom.
@@thejonschwartz yea I’m house hacking my first property 10 year tenants and I’m thinking of just telling them I know the guy who bought it, they can relay questions concerns to me… they are an older couple very self sufficient and don’t plan on ever moving. Thanks
Hi Jon, This may come off as a silly question but I am closing on a 3 bedroom home and I plan to rent out one of the rooms and use the other as an office for business related work. My question is if I start reporting rental income on my schedule E do I now I have the ability to write off necessary expenses that come with having a tenant in my primary home as I would with any other person that has a rental that they rent out? In other words, is there a difference in what you can expense if you have someone renting a room (primary home) vs someone that is renting one of you other properties (Rental property)? I've looked online and have seen some mixed responses so just thought I would ask on this comment section.
That is a GREAT question, and I don’t have a definitive answer. My informed guess is that it’s based on square footage: your home office is a deduction based on the room’s square footage, and likewise, your rented room would deductible in proportion to the square footage. So if the rented room is 15% of the home’s square footage, you could take 15% of the mortgage interest as a rental-related deduction, deduct 15% of the landscaping bills, etc. But again, this is an informed guess. You should ask a CPA who has real-estate investors as clients. Are you in CA? If so, I have a great recommendation! If not, search for accountants on BiggerPockets.com.
In short, yes. It's the same loan product. Call the lender you've been working with (or google "lender" and your city to find a lender) and tell him/her that you want to buy a duplex or a triplex. There are a few differences, which your lender can explain to you.
Seems like it would only be fair that tenants should call a plumber to unclog a toilet if they can't manage it themselves. What's wrong with the world today that people can't take responsibility for their own shit?
If rent is stupid expensive, the landlord better be making it worth it. No tenant wants to deal with a toilet issue themselves if rent is 50% of their income. Why are they paying so much to make landlords rich?
Great video bud. No one talks about the downside. I plan on doing a video from my mortgage broker perspective. I curently house hack with my in laws in our guest house and an Airbnb condo my son lives next to.
@@thejonschwartz you don't get 1 single fixed rate for the entire 30 years, the rates are only fixed until the end of your term at which point you need to renegotiate.
@@curtisw0234 That’s incorrect. A 30-year fixed rate mortgage, which is available for all residential real estate (condos, houses, duplexes, triplexes, and fourplexes) means you keep the same rate for 30 years and have the same fixed payment for 30 years. This is really basic stuff. Use google, please.
Access my FREE house hacking calculator👇
duplexcalculator.com/
My tenants know I'm the owner but they go through our property management repairs rent etc. I just get my rent rolls every month after deposit I love it and there 24 hour maintenance crew is worth every penny of there 6%.
Nice! Thanks for sharing your story!
Fantastic video with great counters to all of the downsides of house hacking. Your channel is an invaluable wealth of knowledge and I greatly appreciate you sharing your experience with all of us!
Thank you SOOOOOOO much!!
House hacking is great I own a triplex that I pay 200.00 to live in with property management in NC. It has built my reserves to 2 years of mortgage payments im buying another in February in a year they'll pay for our dream home single-family 1 more house hack to go.
Hey bro can I message you to ask you how you did it? I’m 20 looking into starting next year and would really love a one on one on somebody who has done it successfully
Hey me too.. need some advice to get this started
House hacking is great, I pay roughly $500 of my mortgage while living in Los Angeles due to renting out my second unit and renting out an extra bedroom in my actual home.
That's killer. Living in LA for $500/month = killing it!
That’s awesome, I want to do something similar. What part of LA are you in? I’m worried that I might be limited to rough parts of LA for the numbers to work. Have a great day.
@@ImOzify I'm in South LA, a couple of miles south of USC. It's definitely not a "good" area but there are worse areas.
But you just have to run your numbers and see what you can get.
Great video! Filled in a lot of gaps for me for my research. Thank you
Most of these problems go away by just hiring the services of a rental management company, they deal with the headaches for a small cut of the rental income. As I'll rarely be home anyway, and mostly just need a residential address so I can stop putting my employer as my home address on financial documents (Trucking industry, OTR) privacy is not really a concern.
That's right! And I'd recommend you check out a service like Hemlane (www.hemlane.com/). I'm not an affiliate, just spreading the word. They offer a full-service tier at $60/month that'll take care of just about everything for you. It's not quite full property management, but it's really all you need if you're able to stop by the property a few times a year. Check it out!
Same, flatbedder here looking into house hacking to meet the need of a residential address without just wasting money on renting something that’ll be unused
Great video - banks will absolutely sell you more house than you can reasonably afford, though, so make sure to be aware of what’s appropriate for you.
Absolutely true! Very valuable advice!
Definitely do not be a landlord in LA or CA in general. Broken toilet is nothing compared to dealing with tenant issues in CA. I kept my elysian park home vacant during covid lockdown. Sold the home while I was in Las Vegas. Best decision ever made. Bought 2 homes with sub 3% rates in Las Vegas. Sitting on massive equity even today.
But single-family homes aren’t subject to rent control in LA or CA. You missed out on tens of thousands of dollars of income with that empty Elysian Park house! Primo neighborhood!
@thejonschwartz walking distance to dodgers stadium and massive park. Awesome area. Had I stayed I would live there. But as a rental my Vegas house is near allegiant stadium, put only 5% down on 300k house, now worth $420k. Much better returns as a rental. House that I'm living in bought for 360k , now worth $460k in a guard gated golf course community. Bought both before prices went crazy. LA still have eviction moratorium but I think it'll become permanent. i grew up in LA and it's shame what LA/CA has become
@@Pennychaser1 I hear you! I used to own on Scott and walk to the stadium. FYI, the moratorium ends Feb 1!
Would you recommend you buy the house using a business or have like a property manager.
I would not recommend you buy a house hack through a business entity. Later in your career, it’ll make sense to buy property through an LLC, but not if you’re house-hacking the property.
Hiring property management is a great idea if you don’t mind trading some cashflow for time freedom.
@@thejonschwartz yea I’m house hacking my first property 10 year tenants and I’m thinking of just telling them I know the guy who bought it, they can relay questions concerns to me… they are an older couple very self sufficient and don’t plan on ever moving.
Thanks
@@TheIdentityBooth That's a great plan. Tell the tenants that a family member in California bought the building!
Hi Jon,
This may come off as a silly question but I am closing on a 3 bedroom home and I plan to rent out one of the rooms and use the other as an office for business related work. My question is if I start reporting rental income on my schedule E do I now I have the ability to write off necessary expenses that come with having a tenant in my primary home as I would with any other person that has a rental that they rent out? In other words, is there a difference in what you can expense if you have someone renting a room (primary home) vs someone that is renting one of you other properties (Rental property)?
I've looked online and have seen some mixed responses so just thought I would ask on this comment section.
That is a GREAT question, and I don’t have a definitive answer. My informed guess is that it’s based on square footage: your home office is a deduction based on the room’s square footage, and likewise, your rented room would deductible in proportion to the square footage.
So if the rented room is 15% of the home’s square footage, you could take 15% of the mortgage interest as a rental-related deduction, deduct 15% of the landscaping bills, etc.
But again, this is an informed guess. You should ask a CPA who has real-estate investors as clients. Are you in CA? If so, I have a great recommendation! If not, search for accountants on BiggerPockets.com.
Hello , Is the mortgage determined based on the property price the same for a single family vs a duplex or triplex?
In short, yes. It's the same loan product. Call the lender you've been working with (or google "lender" and your city to find a lender) and tell him/her that you want to buy a duplex or a triplex. There are a few differences, which your lender can explain to you.
@@thejonschwartz okay I appreciate you for the help
This video just made me want to do it more😂
Don't tell anyone... but that's the point of the video!
Seems like it would only be fair that tenants should call a plumber to unclog a toilet if they can't manage it themselves. What's wrong with the world today that people can't take responsibility for their own shit?
Literally! 😄
If rent is stupid expensive, the landlord better be making it worth it. No tenant wants to deal with a toilet issue themselves if rent is 50% of their income. Why are they paying so much to make landlords rich?
Great video bud. No one talks about the downside. I plan on doing a video from my mortgage broker perspective. I curently house hack with my in laws in our guest house and an Airbnb condo my son lives next to.
Thank you!
Current bubble: Vintage homes
Next bubble after this pops: Vintage clothing
Househacking is how you hyper expose yourself to interest rate risk
How so? House hacking allows for a 30-year fixed rate mortgage, so the interest rate risk is literally nonexistent.
@@thejonschwartz you don't get 1 single fixed rate for the entire 30 years, the rates are only fixed until the end of your term at which point you need to renegotiate.
@@curtisw0234 That’s incorrect. A 30-year fixed rate mortgage, which is available for all residential real estate (condos, houses, duplexes, triplexes, and fourplexes) means you keep the same rate for 30 years and have the same fixed payment for 30 years. This is really basic stuff. Use google, please.
This doesn't make any sense
Curtis you dont know what youre talking about