house hacking in hot market or rent until it cools?
Hello Everyone!
I was looking for input on the situation I am in. I currently live in Austin where housing is pretty hot. I rent a small apartment for 850 a month and don't mind the situation too much. I also was previously roommates with a friend and that worked out well enough.
My question is, would there be any merit in looking for a moderately nice duplex to house hack in this market? Specifically, one that I could rent out the one side completely, and also rent a room to my friend on my side? I could get 400 to 500 from the friend depending on the location (any more than that and he wouldn't move). I also would need a home that a potential wife wouldn't object to living in.
I wouldn't be insisting on a grand slam of an investment, but something that could immediately lower my cost of living while building equity. I would be interesting in holding the house for the long term as well. I just wouldn't want the investment to be a total train wreck if the market were to bubble. It is my hope that the extra income from renting a room on my side might enable me to purchase in this market.
Is this feasible in Austin/surrounding areas or should I rent until the market levels out?
Thanks for any input!