When house hacking is it okay to start with a nice property ?

Question

Aaron K. · Answer

Math wise a fixer will probably be better, but the most important factor in a house hack is picking a property that you would be happy living in, because if you are unhappy then there is really little point to the endeavor.

Martin L. · Answer

Anything is "okay", it just depends more on your own financial situation. If you can afford it and the numbers work out, then go for it. If the property is "nicer" it might just mean that you've paid a premium for the sake of your own comfort. I'm a relatively lazy investor. I bought two distressed properties in the past, and I frankly hated the experience and work involved. Now I stick with turnkey buy and hold. It's slower, but I'm happy and that's also important. It gives me more time to spend with my kids. You may or may not make a little less money, but your happiness and comfort are really also part of the equation. "Nice" or "livable" also don't mean that you can't add value. In the end, as long as the numbers and opportunity costs work, then have at it.

Bryan Clement · Answer

The house has to be livable but that doesn't necessarily mean there's no room to add value. My single family I bought with a government insured loan had a 2X4 ladder to the second floor (no other stairs) limited counter space, no dishwasher, old stove, only a stand up shower, and bad flooring. It's hard to renovate I a single family while living there but more possible with a duplex triplex, etc. Now I can update it even though it was livable before. Getting something livable doesn't necessarily mean perfect.

JD Martin · Answer

Well, it really works well when you've got someplace you can add value, but there's no reason a fixed-up triplex or quadplex couldn't make money right from the start; it will just be harder, since whoever added the value is going to expect to be paid.

Alma G. · Answer

Is there anyone here who can tell me how to use the rental calculator on househacking ? Let's say you rent out your basement while you live on top. Would you count the money you save in rent or living elsewhere as "income" along with the basement rent?

Aaron K. · Answer

@Ray Pryer yes but it may be a less competitive offer

Aaron K. · Answer

@Ray Pryer yes unless you plan on using the FHA 203k

When house hacking is it okay to start with a nice property ?

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