We House Hack Our Casita to Offset Our Mortgage
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Home Details
City/State: Lakeside, CA
Neighborhood: Eucalyptus Hills
Purchase Year: 2021
Home Type: Single Family
Home Price: $850,000
Down Payment: $102,000
Interest Rate: 2.5%
Loan Type: Conventional
4 Bed | 3 Bath | 2800 Sq Ft.
Main House: 3 bed/2 bath, Casita: 1 bed/1 bath
Age: 36
Job: Mortgage Lender
Annual Salary at the time of Purchase: $150,000
Amount in Savings: $10,000
Debt at Time of Purchase: Credit Cards
Number of Homes Owned: 1
Currently Reading: A married couple in their 30’s who saved during the pandemic, and still utilized their parents for help purchasing their home.
What amenities did your home come with?
One of the bedrooms and bathrooms is our pool house/casita. It's a studio and about 450 sq feet. Our really great friend rents it from us for $1400/month! We have a pool, 1.15 acres and amazing views. We live on a hill and only one neighbor can look onto our property, but only a small portion of our front yard. Our side/back yard and pool are completely private.
“One of the bedrooms and bathrooms is our pool house/casita. It's a studio and about 450 sq feet. Our really great friend rents it from us for $1400/month!”
Did you have any debt when you bought or inherited property?
Luckily during the pandemic, we were able to pay off all of our debt and purchased our home with absolutely zero debt. One of us has a job that is market dependent and so we were able to make more money than in "normal" markets. We had had credit card debt for 10 years, up until that point.
Relationship status at time of purchase:
Married
If you bought while in a partnership (purchased together) did you share finances? How did you split the finances/purchase funds?
Yes, we completely merged our finances.
Where did you get the money for your down payment or for the property if you paid in cash?
Because one of us was doing so well that year, we were able to save up $80K of our own money for the down payment. One of our Mom's also gifted us $20K.
Are you and have you always been solely responsible for your mortgage payment?
Yes, but our friend rents our pool house so our total payment with taxes and insurance is only $2800/month.
Did your relationship status change while owning your home? If so, what was the impact (if any) on your ownership?
Nope.
If you still own, do you know what your home is worth now?
Yes
What is your current home value?
$1,050,000
How did you plan to purchase your home(s)?
We kind of fell into the opportunity because of an increased income stream and low rates.
Have you/did you feel any pressure or expectation to buy a home? In what way did your family/friends or social circle impact your decisions to buy and/or sell?
No, but we were pregnant with our first kid so we really wanted a home of our own.
“We were pregnant with our first kid so we really wanted a home of our own.”
What amount of risk do you believe you've taken on through the process of owning and/or selling real estate?
2 / 5
If you'd like to explain your risk number, please share.
If things break, we have to pay for them which is risky however, it would be way riskier to rent since rents have only increased since we bought.
If you could do it all again, would you? Is there anything you would change?
Yes! I actually wouldn't change anything.
What is next for you in real estate?
Improve this amazing property over time. Eventually, we would like to have rental properties.
Tell us about your experience with your Realtor (if you have one!)
I am a licensed agent so I got to represent myself, however, because I don't actually practice real estate, I had the help and advice of my friends! They were amazing. Buyers DEFINITELY need their own agent!
Tell us about anything unexpected (good or bad) throughout your buying, selling, or ownership experience.
Well, the only thing that comes to mind is that our master bathroom shower doesn't have a door and we didn't realize until the first night that we moved in that the water totally gets ALL OVER the floor. The sellers previous to ours had completely remodeled the home in 2004 and the husband was a contractor and they just didn't think that one through. We have contemplated ways to put a door on there!
Please add in any information that deepens the story about you and the homes you've bought and sold.
My husband and I are self-employed. My husband claimed a loss on his taxes which meant he couldn't be on the loan. It would hurt our qualification. So my Dad co-signed for us. But we added the hubby to Title so he is definitely an owner. It would have been nice to do it all on our own, but that's what family is for. San Diego is so expensive, most first-time homebuyers need parent to co-sign or gift them money for a down payment and that's OK! I'm so grateful because now we have over $300K in equity and housing security.
“It would have been nice to do it all on our own, but that's what family is for. San Diego is so expensive, most first-time homebuyers need parent to co-sign or gift them money for a down payment and that's OK! I'm so grateful because now we have over $300K in equity and housing security.”
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The goal of Homeowner Diarie$ is to share stories about how others have bought and sold real estate and does not serve as advice, or reflect the views of Better Mondays.
