Newbie starting with a house hack? Where would you go?

Starting Out
3yFollow

Newbie starting with a house hack? Where would you go?

Abi Horton
Member since 2023 · 29 posts · 13 votes

HI,

I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

Appreciate any advice! :)

7Reply
88 views

Most Popular Reply

Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Abi Horton:

HI,

I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

Appreciate any advice! :)


 This would generally depend on what you're after. Are you looking for appreciation or cashflow? If cashflow is what you're after, I would highly recommend Cleveland. The cash flow is king up there, however appreciation is lacking and seems to be along with the US national average. Whereas cities like Columbus have some cash flow, but tons of appreciation!

5Reply
See this reply in the discussion

32 Replies

Jump to latestLatest
  • Dylan J Berget
    Attorney · Denver, CO · Member since 2019 · 21 posts · 17 votes
    3y

    Based on your budget and investment goals, Cincinnati and Cleveland could be good options for you, especially if you're looking for areas near hospitals that could go the short term nurse rental route. However, keep in mind that every market is different and there's no one-size-fits-all answer to your question.

    If I were starting from scratch and could go anywhere, I would focus on finding a market with strong job growth, a diverse economy, and a growing population. These factors can often indicate a healthy real estate market with potential for long-term growth and appreciation.

    In addition to these broader factors, I would also consider local regulations, tax policies, and other factors that could impact your investment. Some places may not allow STR or MTR type rentals or have a high tax on such rentals. Ultimately, the key is to find a market that aligns with your investment goals and risk tolerance.

    I hope this helps, and good luck with your search for a multifamily property!

    3Reply
  • Pradeep Shrestha
    Investor · Cincinnati, OH · Member since 2022 · 34 posts · 13 votes
    3y

    Definitely Cincinnati. It's much diverse in terms of investing and much more potential than cleaveland. 

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)


     This would generally depend on what you're after. Are you looking for appreciation or cashflow? If cashflow is what you're after, I would highly recommend Cleveland. The cash flow is king up there, however appreciation is lacking and seems to be along with the US national average. Whereas cities like Columbus have some cash flow, but tons of appreciation!

    5Reply
  • Jose CastilloPro Member
    Real Estate Broker · Coral Gables, FL · Member since 2019 · 10 posts · 5 votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)


     Hello, If you are interested in the Miami-Dade market and would like to house hack. I would recommend the area of Homestead where you can find small multifamily below 500K. You can purchase with a low down payment and low-interest rate residential loan. This type of house hack will provide you with cash flow while it continues to quickly build equity. The Miami-Dade market is constantly expanding and full of lots of potentials.

    [email protected]305-803-7512
    1Reply
  • Eric Yu
    Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)

     Welcome to BP @Abi Horton! There's a lot of different factors when considering a market to enter (especially for a house hack), because you'll likely want to factor in your own living conditions as well. 

    I've house hacked in California, but in terms of affordability, I think the Midwest is a great place to do it. Like others have mentioned, Cincinnati & Cleveland work out well; I also like markets in Michigan like Muskegon. 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Abi Horton:

    There are hundreds of cities that would work. Check out Dave Meyer from Biggerpockets. He has blogs or YouTube videos where he presents hard data to show which areas are best for investors right now. Find a  spot you think you would enjoy living in, then do it.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    2Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    Hi Abi, I sent you a DM!

    [email protected]859-443-4952
    Sam McCormack Realtor
    View Page
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Abi Horton

    you can house hack just about anywhere.

    where do you want to live?  what kind of weather do you like?  Yes, lower price points in OH.  do you want to live there?  =)

    1Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    There are a good amount of markets in OH where where the cost of listing is very affordable and also many of the major cities do have a large hospital system so shouldn't be too difficult to find a MF near those areas @Abi Horton

    [email protected]614-963-3340
    2Reply
  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    @Abi Horton that is some strong sacrifice for the goal. Willing to move just to meet the investment goals?! Things to consider:

    1. Can you qualify for a good house hack in that area?

    2. What cash flow numbers (or rent reduction numbers) are you looking for?

    3. Where would you enjoy living? This really seems important. I imagine you will burn out if you don't enjoy living there. 

    The Assumable Guy544 Reviews
    WebsiteView Page
    2Reply
  • Harrison Chow
    Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)


    Hi Abi! What are you looking for in an investment property: appreciation, cash flow or a mix of both? If you're looking for cash flow, Cleveland is the way to go. Cincinnati, on the other hand, has a mix of cash flow and appreciation. Why don't you give Columbus some thought too? As a resident and investor in Columbus, I can attest to the fact that investing in the suburbs here is a wise choice. It is a thriving city that is attracting several major companies, which will bring in thousands of job opportunities in the next few months and years. This would most definitely lead to increase in real estate values and rental demand. Population growth have seen an annual increase of 0.75%. Employment growth is also on the rise, with a yearly increase of 3.58%. Rent prices in Columbus have also gone up by 6% each year. Let me know how I can help and would be happy to chat in more detail with you!

    2Reply
  • Brad Jacobson
    Realtor · Ogden, UT · Member since 2019 · 338 posts · 415 votes
    3y

    $200-250k doesn't buy much multifamily in most markets so I would encourage you to consider purchasing a single family residence with an ADU (accessory dwelling unit or mother-in-law apartment) as well as small multifamily options.

    I know from personal experience that house hacking is a sacrifice so in order to be willing to do it long term, you still need to be comfortable where you are.  Single family homes with ADUs are an excellent alternative and I bet your budget would get you much further with an option like that in whatever market you choose!

    Good luck!

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    The force is strong with the Ohio crew

    0Reply
  • Wyatt Seidel
    Investor · Kansas City · Member since 2023 · 70 posts · 62 votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)


     You should definitely check out the Kansas City area. Not only affordable midwest investing, but fantastic hospitals. I was a nurse before I pursued real estate full time and there is so much opportunity to house house near big hospitals. I'm going to send you a message!

    0Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    When it comes to house hacking, there are a couple of things to keep in mind:

    1. What kind of lifestyle do you want? For example I like the suburban feel while living near the hustle and bustle (thus LA). Do you like to hike? Party? Ocean? 

    2. House hacking comes in different forms. House hacking for appreciation and then leverage the property is one strategy versus looking to strictly cash flow.

    3. Where ever you go, are you prepared to live there for a minute? Keep in mind if a deal works at 3.5% down, why wouldn't an investor putting 20% down pick it up? Therefore it may take some time to get to the numbers you want. Be strategic.

    4. Keep in mind as Brandon Turner said in a podcast, "Real Estate is very forgiving." Where ever you go you will likely be fine. Worst case scenario (assuming the market continues to appreciate) you sell and the profits is tax free and will allow you to scale. 


    I started in a condo and scaled up. I now have a house with ADU and out of state a fourplex and triplex. It all started with a condo that I fixed up and rented the second bedroom.

    0Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    It is important to research and analyze the specific real estate markets of Cincinnati and Cleveland before making any decisions. Consider factors such as supply and demand, rental rates, vacancy rates, and job market trends in order to determine if these cities meet your investment objectives. You can also look into the availability of short-term nurse rentals in both cities to see if this could be a viable option for you. Ultimately, make sure that whatever city you select has resiliency in its economy so that it remains attractive to potential tenants or buyers for long-term growth. Good luck in your search!

    [email protected]832-889-5607
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y

    I would recommend Columbus Ohio personally! I'm from Portland, Oregon and moved to Columbus Ohio initially to become a full time real estate investor. I started off by purchasing my own house hack here by buying a 4 bedroom 2 bath house and renting out the bedrooms for $600 each and from that, I was able to live free! When it comes to house hacking, I would suggest going to a real estate market that still has great cash flow and overall, a place you would want to live. 

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Abi Horton- thanks 1) consider using a FHA loan if buying an owner occupied multifamily property 2) Get a formal pre approval in place for whatever hypotehtical scenario you are considering so you can *determine if you are approvable * get organized * become familiar with the process and the numbers 3) the pre approval process is free / easy and can be done remotely

    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)


     Abi, there are definitely tons of great markets out there. I can speak for the Columbus market. I have gained a huge portfolio here and internationally by following the simple rule of buying below market price through strong negotiation tactics and using data and location understanding to buy deals that sky-rocket in price. 

    The Columbus market definitely has certain areas but a lot of these deals come by off-market. I would find an investor-friendly agent that can provide you with those deals so that you can maximize your returns 

    My team and I skip-trace huge lists and find motivation in appreciating areas and buy these deals. I would be to happy to connect you with the right team that can help you get started investing in Columbus. 

    [email protected]614-802-5698
    ReafCo | Ahmed Group 536 Reviews
    WebsiteView Page
    3Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    3y
    Quote from @Abi Horton:

    HI,

    I am currently living in Long Island, NY (and I hate it here). I was going to buy a condo in Miami (I used to live there and would love to move back) but since realized its just not a good investment move to buy a condo in Miami and cant afford to buy something that would give me some kind of return). So now I think it will be smart to buy a multifamily somewhere and would like to house hack and rent the other unit(s) as MTR, so I am considering somewhere near a hospital and have seen OH come up as potentially a good area for cash flow so have looked at Cincinnati and Cleveland. I can afford around $200-250k. My question is, if you were starting from scratch and could go anywhere, where would it be?

    Appreciate any advice! :)


     Columbus, Ohio is a great area to MTR and house hack. You can get some decent duplexes in a B-/C+ area for around $250k. There are some great loan programs here to put as low as 3-5% down.

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    2Reply
  • Abi Horton
    OP
    Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Nicholas L.:

    @Abi Horton

    you can house hack just about anywhere.

    where do you want to live?  what kind of weather do you like?  Yes, lower price points in OH.  do you want to live there?  =)

    Absolutely, I would like to live in Miami but it’s not affordable for me, and with my budget there isn’t many places that are affordable. Since I can’t live where I want (and haven’t been living where I want for the past 2 years) I figured I might as well go somewhere that will be a good investment in the hopes of getting to a warmer place at some point soon. 
    0Reply
  • Abi Horton
    OP
    Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Dave Skow:

    @Abi Horton- thanks 1) consider using a FHA loan if buying an owner occupied multifamily property 2) Get a formal pre approval in place for whatever hypotehtical scenario you are considering so you can *determine if you are approvable * get organized * become familiar with the process and the numbers 3) the pre approval process is free / easy and can be done remotely


     Thank you, I was pre approved when I was looking in Miami for a conventional loan. I have been doing ALOT of research (which almost becomes overwhelming) but it’s more about deciding on the right location that will be the most beneficial for me. 

    0Reply
  • Abi Horton
    OP
    Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Rick Albert:

    thank you for your considered response, I would love to be in LA, but it’s not affordable, and yes I would love appreciation but I think the way the market is and what I can afford, I don’t think there is many places I can buy that will appreciate a lot in the coming years so as this is my first property, the cash flow is the most important factor right now. 

    I’m not necessarily going to put 3.5 down, whatever makes the numbers work, I would be living in one unit (probably for a year) and renting the other(s) so even if I have to pay some to live that’s fine but it would reduce my living costs (not hard as I’m renting in NY right now) but would need the numbers to work out ultimately so that even if I was to LTR out both units it would still cover itself. 

    0Reply
  • Abi Horton
    OP
    Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Brad Jacobson:

    $200-250k doesn't buy much multifamily in most markets so I would encourage you to consider purchasing a single family residence with an ADU (accessory dwelling unit or mother-in-law apartment) as well as small multifamily options.

    I know from personal experience that house hacking is a sacrifice so in order to be willing to do it long term, you still need to be comfortable where you are.  Single family homes with ADUs are an excellent alternative and I bet your budget would get you much further with an option like that in whatever market you choose!

    Good luck!

    Thank you, I hadn’t really considered this. Would that still be classed as a “multi family property”?
    0Reply
  • Abi Horton
    OP
    Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Ryan Thomson:

    @Abi Horton that is some strong sacrifice for the goal. Willing to move just to meet the investment goals?! Things to consider:

    1. Can you qualify for a good house hack in that area?

    2. What cash flow numbers (or rent reduction numbers) are you looking for?

    3. Where would you enjoy living? This really seems important. I imagine you will burn out if you don't enjoy living there. 


    It's possible, but I have been living in Long Island NY for more than 2 years and I hate it. If I could house hack and reduce my living expenses, the goal would be to save up a deposit quicker to buy the next property as soon as a year is up, AND be able to travel more and rent out the unit I would be staying in as STR when I'm not there.

    I don’t think I have an “ideal” case scenario right now but this is as close as I can come to it, as long as I can be somewhere I feel safe. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free