Looking to House Hack in Tallahassee?
Start your journey with a local expert who’s done it himself.
In my view, House Hacking is simply the best real estate strategy.
By purchasing a small multifamily property (2-4 units) and occupying one of the units while renting the others, you give yourself almost every advantage possible as a homeowner or real estate investor.
- Purchase with the best kind of financing available - the lowest down payment requirements and best interest rates.
- Your tenants are paying some, if not all, of your mortgage.
- The best and safest way to learn how to be a real estate investor or landlord.
- Repeat the process with another property in the future.
I got my start with house hacking, and I can help you, too.
In 2018, I bought my very first home – a fourplex in west Tallahassee near Florida State University. I had no experience, so I was both really excited…and very freaked out.
My wife and I fixed up one of the units, moved in, and rented out the other three. In the three years I owned “the quad”, I learned a ton, and it kickstarted my real estate investing career.
I left my W-2 job in 2022, and the rest is history. Today I help others buy and sell investment property in Tallahassee as a licensed REALTOR® with Dalton Wade. As your house hacking agent I’ll:
- Assist you with defining your buying criteria and sourcing properties.
- Work with you on negotiating the best deal possible.
- Connect you with experienced professionals to help you at each step of your journey: from home inspectors to property managers.
It’s always a true honor and privilege to help others get started on their real estate investing journeys by purchasing a duplex, triplex, or fourplex/quad. I also continue to do my own investing, including flipping vacant land throughout Florida and building spec homes.
Frequently asked questions about house hacking
Let me give you the stereotypical real estate agent response here: yes! Ok, a qualified “yes.”
First, we’re not building any new small multifamily properties in Tallahassee at the moment (hopefully this will change in the future.) While the real estate market doesn’t always appreciate, the built-in scarcity of small multifamily means the general trajectory will be up as time goes on.
Second, the housing market remains fairly tight and we enjoy low vacancy rates here in the Capital City.
With all of that said, not everyone should be house hacking (see next FAQ).
Contrary to what you might see and hear from various real estate gurus, you do need cash on hand to do house hacking.
Yes, you can buy a small multifamily property without a lot of cash out of pocket. That does not mean you should put all of your savings into a purchase and be essentially broke the day after you close!
While your tenants will likely be paying for the bulk of your mortgage payment, if not all of it, you’re still on the hook for maintenance, repairs, and management. You should never house hack without adequate reserves in place. How much is “adequate”? Having six months of mortgage payments locked away in a savings account is a good start, but this number is ultimately up to you and your risk tolerance.
You’ll also need good credit to qualify for reasonable financing. Talk to your lender to get an idea of what kind of FICO score they’re looking for.
You’ll use a typical home loan. There are several products that exist and each have their advantages and disadvantages – FHA and conventional financing are the most common, with minimum down payment requirements of 3.5% and 5% respectively. If you’re a veteran or active duty service member, you can use a VA loan and put as little as 0% down! If your property is in a designated rural area, you might also be able to use a USDA loan and put as little as 0% down. I’m happy to provide a list of lenders who you can speak with and can give you more details about what you would be pre-approved for.
When you put a property under contract to buy it, you’ll get a home inspection, a wood destroying organisms (WDO) inspection, and a radon inspection. You’ll get a full picture of what will need immediate repairs prior to closing, and items that will eventually need your attention in the months and years after you take ownership.
I also recommend having a handyman or contractor walk the property to give you an estimate on various fixes, whether they’re immediate or items you’ll be addressing later.
After you close on a property, it’s critical to maintain healthy reserves (six months of mortgage payments is a good start, but this is up to you) to handle ongoing costs related to tenant turnover, basic maintenance, and eventually capital expenses.
I generally recommend you hire a property manager, which will typically cost between 8-10% of your gross monthly rent plus fees for tenant turnover. Nonetheless, this is completely up to you.
My simple view is your time is valuable, and its best spent on your family, your job, and your investing, not on managing tenants and contractors. Leave it to the pros.
As a house hacker, you’re present on the property and can effectively “manage the manager” this way. If you’re unhappy with your property manager’s performance, there are plenty of other options here in Tallahassee to choose from.
There’s no out of pocket costs to you.
I’m a real estate agent so I get paid a commission when you buy a property. Commissions are negotiable. I charge a 3% commission plus a $390 transaction fee that goes to Dalton Wade, my broker. A seller will usually pay a portion of this commission. This figure will vary from property to property.
