House Hacking & The 2% Rule

[Ahmed Ogunbunmi]

Greetings BP! Kicking off my REI journey and as a first timer I'm looking to break into the game through house hacking. Currently, pursuing a triplex in the Philadelphia market that needs a full gut. In applying the 2% rule to the 3 units the deal works great, however, since I am planning on also making this my primary residence and covering the mortgage from the two tenants technically I would not be paying myself rent. With income coming from only 2 units the property ultimately fails the 2% percent test while I'm living there. Is this a good deal worth pursuing? Thanks in advance for the insight!

[Jon Sanborn]

Ahmed Ogunbunmi I graduated from Temple, so I know that area of North Philly well. I'd love to get my hands on a multifamily around there but the prices are high and inventory not really existent, but I'm still going to try. Right now I'm focusing more in Germantown. I've been vetting out the good and bad streets.