I'm new to this forum, so apologies if this has been discussed before. I'm curious about those who have done house hacking (i.e., buying a duplex, living in one half and renting out the other with the intent to largely or fully cover the mortgage payment with rent received).
For those who have done it:
- Did it work out as you expected?
- Pros & cons of house hacking?
- Did house hacking help you segue into more real estate investment properties?
I'm new to real estate investing and it seems like house hacking could be a good way to get started. I'm in my mid 20s, trying to stack up some cash, and would ideally like to own more properties in the future.
Any advice or insight helps, thanks!
Kind of did it with my first place, rented out the other bedroom and then turned it into a full time rental after a few years. Probably still a good idea to do today, but I would say that the window to make large gains with little down has probably closed. Additionally, margins will be tight, I would love to get another rental, but I can't find anything that will be cash flow positive with less than 30-50% down.
…this is now being called “House Hacking?”
…seriously?
Definitely not a new term lol
House hackers looking on zillow.com for properties meeting the 1% rule
I have not done house hacking directly (bought a foreclosure and fixed it up while living there to get my start). I would say house hacking is probably one of if not the strongest financial moves you can make (you have someone helping pay your mortgage/principle pay down, the interest you pay is tax deductible, the property appreciates over time, you housing cost is subsidized, and you gain experience in the space). Cons are you have to share a building with someone else/deal with a tenant. You will be responsible for getting the right tenant, dealing with vacancies, and maintenance/repairs. I have seen a LOT of investors get started with house hacking and move into other things.
If you are open to the idea I would highly recommend it. Some of the other comments mentioned the 1% rule and higher down payments in order to cashflow, the 1% rule is near impossible to find anymore and you will more than likely not cashflow unless you do a large down payment but that does not mean it isn't a good move anyway. Focus on safe/good areas.
Good stuff man appreciate the insight
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