Episode•March 11, 2021•35 min

House Hacking with Jen Narciso | Ep. 54

Have you heard of house hacking? In this episode, Jen Narciso, real estate investor and avid house hacker, explains the concept and how it helped her family get started in real estate investing. Catch these gems! **This episode was recorded in 2020. So, disregard any mention of dates by Tiff and Jen.** About Our Guest Jen Narciso is the host of the Investor Mama Podcast, a wife, mom, daughter, granddaughter, real estate investor, business owner, and project manager. An adamant reader and a consumer of content geared towards helping individuals reach financial independence. Jen believes anyone can get out of debt and get financial independence by getting educated, changing their habits and changing their money beliefs. Her goal is to help many moms and dads with their money journey so they can set an example for the next generation. Follow her on Instagram: www.instagram.com/investor_mama Join her Facebook group: https://www.facebook.com/groups/438814630372392/?ref=share Jen's Website: https://investormama.com/ Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Channel Pinterest: Money Talk With Tiff This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
House hacking is a low-risk real estate strategy using FHA loans to buy multi-unit properties with minimal down payment (3.5-5%)
Live in one unit and rent out the others to offset mortgage costs
Requires only one year of owner-occupancy before moving out
Allows living in high-cost areas while building equity with minimal personal capital
2
FHA 203k loans combine purchase and rehab costs into one mortgage, with built-in contractor oversight
Bank withholds funds until work milestones are met, protecting buyers
Tenants essentially pay for property improvements through higher rents
Requires using FHA-approved contractors who accept milestone payments
3
Factor in CapEx, maintenance, and vacancy when calculating true cash flow
Set aside funds for major repairs (roof, appliances) as capital expenses
Budget for routine maintenance like plumbing or handyman services
Account for turnover costs between tenants to avoid negative surprises
4
Real estate can build generational wealth even without inherited money
Jen and her husband bought their first duplex in 2013 with no family assistance
They now own multiple properties designated for each child's future benefit
Involves kids in the process to teach financial literacy from a young age

Intro

Tiffany Grant interviews Jen Narciso about house hacking as an accessible entry point into real estate investing, recorded in 2020.
Jen Narciso is the founder of Investor Mama and host of the Investor Mama Podcast. She's a wife, mom, real estate investor, and project manager focused on helping families achieve financial independence through education and habit change.

Investor Mama Website Instagram Facebook Group

– How Jen Started Podcasting

Tiffany recounts meeting Jen at FinCon and encouraging her to start the Investor Mama Podcast using the free recording booths available at the conference.

Everything you want is on the other side of fear.
– Tiffany Grant

– What is House Hacking?

Jen explains house hacking: buying a duplex, triplex, or fourplex, living in one unit, and renting out the others. She calls it a low-risk way to get started in real estate.

I could do anything for a year.
– Jen Narciso

– FHA Loans and Low Money Down

Jen breaks down using FHA loans requiring only 3.5-5% down payment, making real estate accessible without needing 25% down.

She also discusses the FHA 203k loan which rolls rehab costs into the mortgage, allowing tenants to effectively pay for property improvements.

– The FHA 203k Loan Process

Jen explains that FHA 203k loans require approved contractors and milestone-based payments, which protects buyers from contractor issues.

The bank won't release the money until you finish this. You got it.
– Jen Narciso

– First Property Purchase (2013)

Jen and her then-boyfriend bought their first duplex for $280,000 with 5% down. The property allowed them to live in a desirable area they couldn't otherwise afford.

They refinanced to pull equity for their second property rather than using a HELOC.

– Second Property and Rehab Challenges

Jen shares the chaotic experience of moving into their second property during a rehab while pregnant, including staying in a motel when construction wasn't complete.

They lost their son Nathan at birth and struggled with an 8-month vacancy that drained savings, but the property still proved worthwhile long-term.

– Building Generational Wealth

Jen explains they designate properties for each child and involve their daughter in the real estate process to teach financial literacy.

We never teach her toys or things like that, but we use it now so that now that I recently lost my job... we're okay.
– Jen Narciso

– Why Jen Loves Real Estate

Jen describes real estate as allowing someone else to pay for your retirement while providing tax benefits and appreciation - benefits no other investment vehicle matches.

Resources

Topics

real estate investinghouse hackingFHA loansgenerational wealthreal estate strategyfinancial independencelandlord tipsinvestment propertiesfamily financerefinancing