House Hack Property Tour + Analysis | Pasadena Duplex

[@thejonschwartz]

Access My FREE house hacking calculator👇 duplexcalculator.com/

[@JonPhenom]

So grateful for this! Great breakdown!! Thank you

[@TheCinnamondemon]

love how you compare with renting and buying property out of state, since a lot of people living in expensive cities have to debate whether buying in their city or continue renting and buy elsewhere

[@chai_n_samosa]

Great video and analysis, John! Glad to see you busting out these valuable videos.

[@lisademarco2232]

Hi there - Can you recommend any agents focused on duplex house hacking in San Diego?

[@zacharygripenstraw2897]

Great video! You mentioned at 7:25 "conventional loan minimum down payment of 15%" Any other way around this down payment requirement in CA/LA? Guessing FHA isn't the right route for a Duplex HH?

[@thejonschwartz]

You can definitely buy a duplex with an FHA loan and put down less than 15% -- as little as 3.5%, technically. The "catch" is that competitive properties won't be won by an FHA loan. The FHA can sink an escrow because of its added layer of requirements (I've lost two deals thanks to the FHA), and sellers know this, so they'll take a comparable conventional loan every time. The trick is finding a duplex that's been languishing on the market, but still presents a great house hack opportunity. Let me know if I can help: [e-mail]

[@zacharygripenstraw2897]

@@thejonschwartz super helpful. Appreciate the response! I’ve read you can still do a conventional loan even with 5% down payment. Is not the case for Multi-family/duplex? I may reach out sometime next month!

[@thejonschwartz]

@@zacharygripenstraw2897 The 5% down payment is only for single-family. The conventional loan minimum down payment for a duplex is 15%. Then it's 20% for a triplex and 20% or 25% for a fourplex (I'm not sure where that number is at the moment).

[@millennialmoneyprogress]

As usual, great video Jon! I've been using your calculator recently to help decide whether I should take advantage of a relative willing to sell me an off-market duplex in the South Bay area of LA. I already live in one unit and they live in the other and we could potentially qualify for Prop 19 since it's a parent-child relationship. The catch is the relative would be paying me below market rent for a few years before they retire out of state. I think it could be worth it though since I could use an FHA loan to enter with a low down payment and refinance out of it in a few years. Looking forward to your future videos on house hacks here in Los Angeles!

[@thejonschwartz]

I say, run the numbers! Buying a duplex in LA almost always means inheriting a tenant paying below-market rent. Just make sure that your “below market” purchase price is legitimately below market based on rental income.

[@aznbo187]

Clear cut, straight to the point. Your calc looks really clean too! Great job! Can you cover financing strategies on properties with adu/sb9 potential where the adu still needs to be built?

[@thejonschwartz]

In both cases, you'd need to have enough equity in the property to open a HELOC or home equity loan.

[@aznbo187]

@@thejonschwartz Yup. Are you also an agent? Just wondering if you offer any services as I’m looking to purchase in LA.

[@thejonschwartz]

@@aznbo187 I am! Email me: [e-mail] Let's setup a time to talk!

[@TheCinnamondemon]

i feel like the property wouldnt cash flow if you were to move out then need to hire a property manager as well.. this is the case in a lot of expensive cities. is it still worth it to buy bc of the appreciation?

[@thejonschwartz]

I don’t believe you should ever pay for an investment. If it doesn’t cashflow when you think you’ll want to move out, it’s not a great house hack. That said, I don’t think property management is necessary if you’ve lived in the property yourself and know whom to call when something breaks.

[@jamescc2010]

We can live in unit as a primary resident (for a year) and put 5% down for this?

[@thejonschwartz]

Yup!

[@kyungyu5931]

Great video!

[@thejonschwartz]

Thank you! I have another duplex property tour coming out in two weeks.

[@jamesphilip4562]

I’ve signed up for your calculator but for some reason I don’t get it

[@thejonschwartz]

James, check your spam folder. I'm going to email you right now, too. Thanks!

[@Nonotnow7543]

That looks so simple yet amazing. Are they doing 15% owner occupied loans? Last time I talked to a mortgage broker they said it was no more.

[@thejonschwartz]

Yes... The broker I work with offers 15% down on duplexes and even 5% down on single-family homes still.

[@Nonotnow7543]

May have to use your broker when I move out there!

[@BernieSanders-bn5dk]

Do you know of any books to learn all this?

[@thejonschwartz]

This one is excellent: amzn.to/3K6efOP