# How To Buy A House For Free : A Beginner House Hacking Guide



## Hiraeth (Aug 20, 2022)

*How To Buy A House For Free : A Beginner House Hacking Guide*
Made in 8/20/2022 prices and loans may vary



Table of Contents:

Intro
The Basics
Loans To Take out
How Find A House Step By Step 
Down Payment Assistance Programs
Tips
Conclusion







Spoiler: Intro



*Intro :*
This is a BEGINNERS tutorial, when it comes to house hacking and real estate in general, a lot of things are location dependent. Not to mention there are a variety of different ways to house hack, so for the purpose of this thread I will be teaching you the basics of house hacking. 





Spoiler: The Basics



*The Basics :*

*What is house hacking?*
House hacking at its simplest is the idea of buying a property that you would live in while simultaneously renting out the extra space to generate income. 

*EX #1 *: You can buy a house with the intent of renting it. This would come with a 20-25% down payment. This house has 4 bedrooms and you receive $1700 a month. 

*EX #2 *: You can buy a house with the intent of house hacking it. This would come with a 0-3.5% down payment. This house has 4 bedrooms and you receive 700 a month from each bedroom which gives you a total of $2100 per month as well as a place to live. 





*(Part 1) Buying a house for you to live in: *
The beauty in house hacking is, because YOU are living in the property you can get loans with a low down payment owner occupied loan.




*(Part 2) Renting out the extra space :*
The beauty in house hacking is, because YOU are living in the property you can get loans with a low down payment owner occupied loan.


*Starting prerequisites :*

Decent credit score
Four months worth of mortgage payments (Minimum) 
A job / proof of income
House hacking knowledge

*Finding a house*
You have alot of options because of the low down payment. 
Your options are :

Single Family House
Duplex
Triplex
Quadplex
Multipurpose Office

For this thread I will mainly be covering single family houses because I believe they are the most probable for beginners. Although usually the more costly the building such as a triplex or quadplex the more money making potential. 





Spoiler: Loans



*Loans :*
These require a decent credit score checkout my other thread on beginner credit cards as well as the basics to getting a good score. These are the main two loans for house hacking

*VA Loan*
Link : VA Home Loans for Veterans and Military | Veterans United Home Loans
Perks : 

No PMI (Private Mortgage Insurance)
0% Down
Minimum Credit Score of 660

Requirements: 

Must be in the military
 




*
FHA Loan*
Link : Basic FHA Insured Home Mortgage | GovLoans
Perks : 

3.5% Down
Has PMI
Minimum Credit Score of 500
 

Requirements: 

Drivers License
2 Years Work History
2 Years Tax returns
2 Years W-2 or 1099
Requirements vary

Other : Ment for first time home buyers


*Loan Approval :*
You must be pre approved by a lender. A LOCAL BANK / CREDIT UNION IS ALWAYS RECOMMENDED (They help you through the preapproval process for free) They will let you know how much they can loan you based off of income, credit, debt. They can also tell you how probable a loan is if you have parent cosign for you.





Spoiler: Step By Step



*Step By Step :*





*#1 : *
First your going to need to use a site called “redfin.com”
Link : Real Estate, Homes for Sale, MLS Listings, Agents | Redfin
Type in your location, find a location. 


*#2 : *
Load Up your house hacking Calculator
Link 
Make A Copy 


*#3 : *
Type in all the details needed, if you scroll down from Redfin information like that monthly taxes and homeowners insurance should be there.

*#4 : *
Go to Zillow.Com, price my rental
Link : Zillow Rent Estimate Calculator | Zillow Rental Manager
Put in the address and look at the other properties to estimate how much you will receive in rent. 

*#5 : *
Take that income from zillow and make an appropriate price per bedroom. You can also choose to rent the bathrooms as well depending on if you think you will be able to find someone to pay. 

EX : A 4 bedroom 2.5 bathroom house rents for $2000 a month. Rent each bedroom for 600-800 per room. (You will be living in one room)

*




#5 : *
Go back to your calculator and type in your expected monthly expenses. Make sure you have some money in vacancy and management just in case a tenant leaves or you need to fix something. 

*#6 : *
At the bottom of the calculator your total will come up. If your monthly cash flow is below 0, figure out if your cost is below an apartment room. If so, your cost is worth it. More often than not you may be getting some additional cash flow, I suggest you keep all profits and put them back into the house if needed.

*
#7 : *
And there you go! You now have a fairly accurate number of how much a house would cost if you were to house hack it.





Spoiler: Down Payment Assistance 



*Down Payment Assistance :

What is downpayment assistance?*
Down Payment assistance is exality what the name is. Some entity assists you in paying your down payment, this comes with conditions. YOU HAVE TO PAY IT BACK if you sell the house. 





*Why would you use down payment assistance?*
There is no interest associated and it's basically someone loaning you money when you start. The two best perks is, when you're starting you dont need alot of money and with time due to inflation the money they lend you goes down in value. 


*Link to assistance programs per state*
Link : Down Payment Assistance DPA Programs Complete Guide (hsh.com)





Spoiler: Tips



*Tips :

What are you willing to sacrifice?*
The less room you take up the more money you will receive. What short term sacrifices are you willing to make for long term success? 

*Rule of thumb #1*
In general you will usually qualify for a loan that is 2-2.5 times your income

*More income potential. *
If you want even more income, buy a RV and keep it parked in the yard or driveway and live out of it
*
How to find tenants?*
People you know and friends of friends are going to be your best bet. 
BUT, if you want the most cashflow you can use airbnb, craigslist and other renting apps / websites





Spoiler: Conclusion 



*Conclusion :*


This is simply a beginner tutorial and I suggest if you're interested you look into this a little more. The thing with househacking is, prices will vary depending on location and the real estate market. You can also choose to customize the location and type of house which changes prices. Last you can decide to rent out specific areas like bathrooms and bedrooms or stick with the traditional bedroom only. For these reasons when looking for a house you should learn a little bit more about house hacking. (Disclaimer : Ive never house hacked in my life and everything I say should be taken with a grain of salt. However I do plan on house hacking and ive put a good amount of research into this thread.)


----------



## Toth's thot (Aug 20, 2022)

how do I get lefort for free


----------



## Hiraeth (Aug 20, 2022)

Tags (Based on interaction) : @StuffedFrog @traveler @heighmaxxerxd @LsdLand @Witheredly90 @latincell95 @capybara @ArvidGustavsson @StormlitAqua @fruitgunpop @Blackmannnns @TeenAscender @zv1212


----------



## Hiraeth (Aug 20, 2022)

w


Toth's thot said:


> how do I get lefort for free


wtf is "lefort" like the surgery?


----------



## Deleted member 19152 (Aug 20, 2022)

why want a house

also; buy ≠ free


----------



## Hiraeth (Aug 20, 2022)

Nano said:


> why want a house
> 
> also; buy* ≠ free*


free income after its paid off. you can also live in it if u want to


----------



## zv1212 (Aug 20, 2022)

Rhinoplasty hacking guide?


----------



## latincell95 (Aug 20, 2022)

Hiraeth said:


> *How To Buy A House For Free : A Beginner House Hacking Guide*
> Made in 8/20/2022 prices and loans may vary
> 
> 
> ...



Step 1) Move to low COL area

Step 2) Get a decent paying job in the area. Research the job market. You’ll find a job in healthcare anywhere.

Step 3) Save your money

Step 4) Buy/build house. Building is a lot more expensive in 2022 due to lumber prices.


----------



## QuestForChad (Aug 20, 2022)

it's simple, you take out a loan and buy the house you want. You enjoy the house as much as possible and kill yourself just before the 1st instalment is due. With your mom it was even easier, how eager she was to spread her legs with just a promise of cash


----------



## Deleted member 21620 (Aug 20, 2022)

lol


----------



## Deleted member 21192 (Aug 20, 2022)

QuestForChad said:


> it's simple, you take out a loan and buy the house you want. You enjoy the house as much as possible and kill yourself just before the 1st instalment is due. With your mom it was even easier, how eager she was to spread her legs with just a promise of cash


the first part was funny the 2nd part is just too "edgy gangstercel" type beat


----------



## Deleted member 21192 (Aug 20, 2022)

interesting thread though


----------



## Deleted member 21192 (Aug 20, 2022)

Hiraeth said:


> w
> 
> wtf is "lefort" like the surgery?



yes he means the surgery


----------



## Deleted member 21192 (Aug 20, 2022)

zv1212 said:


> Rhinoplasty hacking guide?


punch your nose in


----------



## Xangsane (Aug 20, 2022)

Hiraeth said:


> *How To Buy A House For Free : A Beginner House Hacking Guide*
> Made in 8/20/2022 prices and loans may vary
> 
> 
> ...



Does this work in the UK?


----------



## Moggie (Aug 20, 2022)

Toth's thot said:


> how do I get lefort for free


second mortgage


----------



## Moggie (Aug 20, 2022)




----------



## Hiraeth (Aug 21, 2022)

zv1212 said:


> Rhinoplasty hacking guide?


Lmao, I don’t look into surgery’, softmaxing and status/money making only


----------



## Hiraeth (Aug 21, 2022)

QuestForChad said:


> it's simple, you take out a loan and buy the house you want. You enjoy the house as much as possible and kill yourself just before the 1st instalment is due. With your mom it was even easier, how eager she was to spread her legs with just a promise of cash


Bro a horrible 1 month plan. Only works if you get a high loan and some how manage to spend the entire loan on a down payment


----------



## Hiraeth (Aug 21, 2022)

Xangsane said:


> Does this work in the UK?


Tbh, I have no idea. In theory is should work everywhere


----------



## Shitfacegoodbod=mog (Aug 21, 2022)

Hiraeth said:


> *How To Buy A House For Free : A Beginner House Hacking Guide*
> Made in 8/20/2022 prices and loans may vary
> 
> 
> ...



over for ur post rep ratio ngl OP


----------



## Hiraeth (Aug 21, 2022)

Shitfacegoodbod=mog said:


> over for ur post rep ratio ngl OP


Lmao, ik ik just making these guides to help out my fellow lookmaxers. Would be really nice to get a post on the best of the best tho


----------



## Shitfacegoodbod=mog (Aug 21, 2022)

Hiraeth said:


> Lmao, ik ik just making these guides to help out my fellow lookmaxers. Would be really nice to get a post on the best of the best tho


miring bhai, you willl get it one day mashallah


----------



## enchanted_elixir (Sep 7, 2022)

Hiraeth said:


> *How To Buy A House For Free : A Beginner House Hacking Guide*
> Made in 8/20/2022 prices and loans may vary
> 
> 
> ...



Didn't read because I'm short on time but these moneymaking threads are underrated!!!

More money = faster and better looksmaxing.


----------



## Hiraeth (Sep 7, 2022)

enchanted_elixir said:


> Didn't read because I'm short on time but these moneymaking threads are underrated!!!
> 
> More money = faster and better looksmaxing.


I have another one on creditcards. If your intrested. https://looksmax.org/threads/a-complete-creditcard-guide-for-beginners.551181/ used your template when I made it cuz your guides are A1


----------

