Is it worth it to house-hack in Illinois?
I live in northern IL, and I'm debating on whether to buy a 2 unit and rent out 1 of the units while living in the other (house-hacking). The other option I'm thinking of is just continuing to rent in IL, and buying a 2 unit in a different state that is better financially. I'd be willing to be like a Brandon Turner and learn how to do the property management and repairs myself, but in the short term I'd probably want something that is relatively ready to rent out.
Would love your input!
Thanks,
Landon
Most Popular Reply
I would vote going the route of house hacking for the first investment and here is why:
1) Helps you to mature as a manager of your property and business while keeping a close eye on things
2) FHA 3.5% down payment, fixed interest loans available on 2-4 units if 1 unit is your primary residence
3) Allows you to put in a little extra work (repairs, mowing, cleaning, etc.) to increase your cashflow
This is the exact path I took 10 years ago and although I would not buy the same property today (paid too much, nicest place in the neighborhood, super high property taxes, etc.) this was my launch pad into REI and a great way to get started.
Best of Luck,
Scott