In this section, we will be talking about preparing to buy your next house hack property. Whether it’s moving from your first house hack to your second or your fifth house hack, we will help you with the steps needed to transition to that next one. We will go through some considerations you will want to keep in mind when planning your next house hack and turning your current house hack into a rental.

This module covers what to include on the checklist for your next property.

Four Learning Options!

1. Order the book on Amazon or grab a copy from us
2. Listen to episode “#216: UHHG – #13 Buying Your Next House Hack” on the Denver Real Estate Investing Podcast
3. Watch the YouTube video (at the bottom.)
4. Read this blog post, which is from the book.

Start at the Ultimate House Hacking Guide for Denver Overview for a list of all the modules.

Checklist for next Property:

• Review strategy and assess current market and portfolio
  • Take a step back. Look at your current strategy and evaluate the current performance of your property/properties, the market and your finances.
  • Check in with your team (agent, lender, coach) to make sure everyone is still on the same page.
  • Make changes as necessary.
• Lending
  • Do you have the down payment and acquisition costs saved?
    • At least 5% + acquisition costs ready to go.
  • Can you qualify for the new mortgage with or without a lease and income from your current house hack?
    • Check with the lender two to four months before you plan to purchase the next property so that you can make sure everything is lined up correctly and there won’t be any issues to qualify for the next loan (ex. Is your credit still good? Have you been reporting rents correctly?)
  • Occupancy rule timeline compliance.
    • Have you lived in your property for 12 months to meet the occupancy requirement?
    • Remember, refinances may reset the 12-month timeline.
• Finances
  • Do you have sufficient liquid reserves for your current properties and the new one?
  • As mentioned in a previous module, we recommend six months of PITI or $10,000 per property.
• Tenants
  • What’s the plan for your current house hack?
    • Are you moving out and replacing your spot with one or more renters?
    • Are you moving everyone out and renting to long-term renters?
  • What’s the plan for the new house?
    • Know when your closing is so you can start marketing.

None of this is rocket science but these are important things to keep in mind. You always want to be thinking ahead so you can know what to expect and plan how you will move forward. It’s better to have a plan and have it change than no plan at all.

A unique service that our team provides is an annual review to go over your finances, goals and market changes so we can make any needed adjustments to your strategy and set new goals. Our main objective is to be your long-term real estate investment advisor.

YouTube Video: Buying Your Next House Hack

Podcast: Play in new window | Download | Embed