Ep. 66 House Hacking with Alicia Sierra

In this episode, REALTOR® Adam Kruse and REALTOR® Shannon St. Pierre talk to REALTOR® Alicia Sierra about house hacking which is when an owner/occupant buys a property and then hacks it up to rent out to other paying tenants. The main goal is to cover mortgagee, interest, taxes, and maintenance so they are getting paid to live in their own home. Adam Kruse - https://hermannlondon.com/realtor/adam-kruse/ Shannon St. Pierre - https://hermannlondon.com/realtor/shannon-st-pierre/ Alicia Sierra - https://hermannlondon.com/realtor/alicia-sierra/ ITUNES-http://goo.gl/rs1q9X Theme Song by Trastornobeats 1:50 Adam introduces REALTOR® Alicia Sierra 2:20 What is house hacking? 3:05 The ultimate house hack is where the buyer would actually cash-flow while living in the house 5:17 There are special programs and grants available for first time homebuyers 7:40 Credit union 100% financing may only work on a single family residence but there may be a floorplan that leads itself to privacy like a walk out basement 8:48 There should be a homebuying course in highschool 9:08 Alicia is helping her 18 year old build credit now 11:05 Keep in mind what kind of landlord you want to be 12:18 When Adam bought his first house and had his friends move in there was some confusion about whether they should just pay the mortgage or pay market rate 16:27 If you know the terms of the loans then you can plan out your cashflow 20:40 What is holding people back from house hacking? What makes a person buy a house? 22:14 Why is there so much demand for turn-key properties? 22:30 Why aren’t buyers maxing out their pre-approvals? 23:30 Adam liked renting when he was younger because he didn’t have to care about the cracks in the house 27:53 You always have to ask “what if the house is damaged and there is no income” 28:15 Is it important to buy a house you can afford even without roommates? 29:58 The rental income should be a bonus and not something you have to rely on 30:15 What kind of house is best for house hacking? 32:30 Is the homebuyer willing to take on projects or do they want a turnkey property? 35:20 Get a boyfriend or girlfriend so you can charge them rent :) 36:30 Use a property manager if you don’t want the duties of a landlord 38:30 Talk to an attorney to be prepared for worst case scenarios 38:50 Get into the habits of an investor so hire a property manager and an attorney now 45:05 What is a construction loan? 47:15 Use your banker and REALTOR® to help strategize 50:50 How do you raise rent on tenants when they are paying way below market rate? 52:28 You can buy other investment properties while you are house hacking 1:01:09 Follow Alicia on Twitter @StandUpAgent, or call 3143259565, text cashflow to  3143104199 to get on the list