House Hacking in Expensive Markets

[Dominic Holt]

So house hacking to me is an amazing way to get into real estate and the most promoted benefit is that the tenants pay the mortgage or most of it as well as low down payment.

But I live in Portland, OR and a duplex goes for 450K to quite a bit higher. 

After doing some numbers I would still be paying a hefty portion of the mortgage even after taking into account market rent of the other unit. 

An example: Purchase price is 450,000. One unit is being rented for $1,150. Other unit I would live in. Monthly mortgage payment is $3,321 with 5% down. Which means I would be paying $2,171. This does not even take into account repairs etc. 

This defeats the goal of house hacking. 

I was wondering how house hacking is being done when property prices are so high? Is house hacking a thing of the past in these markets or is there some tactic I am missing? 

[Scott Trench]

There are only two things that are WORSE than house-hacking in an expensive market: 

- Renting in an expensive market

- Buying a home in an expensive market with no tenants occupying rooms/additional units to help you pay the mortgage. 

A house-hack doesn't have to completely cover the mortgage to be a far cheaper way to live than buying or renting. You can win without getting "perfect".

Hopefully, this gives you the answer you need :).