House Hacking at 19 years old. Buy brand new or a fixer upper?

Question

Hi, my name is Gabe Chase and I am 19 years old and I am looking to get into real estate investing by house hacking. There aren't too many properties in my area that jump out to me as comfortable to live in or that are turnkey and ready to be rented. So I looked a little deeper and stumbled upon a new neighborhood being built and I remember on episode #392 of BP Todd Baldwin mentioned how he buys new construction houses and rents them out by the room. This is exactly what I am aiming to do with friends. I am writing this post to get everyone's insight on house hacking, the struggles/rewards? Should I buy brand new or look for something with some work that needs done? Really any advice! Thanks everyone! Stay safe and stay healthy!

James Wise · Answer

I would go with a house hack as it requires the least amount of cash while also putting a roof over your head.

Mack Benson · Answer

I think it could be a good move. When I was younger I knew a few guys that purchased new townhomes and rented out the remaining rooms and were even house hacking back then so it is definitely a possibility. Unfortunately the cost to build in my area has risen in the last 20 or so years so that a new build isn't very suitable for a house hack situation without having to cover a large chunk of the mortgage yourself. Where I'm located your best bet is to get someplace that needs some work so you can force appreciation while having a small mortgage obligation because your renters are covering the majority for you.

I think you should be careful with your numbers in these situations so you know what to expect for income/expenses going in and aren't blindsided. As long as everything checks out I think you may be on a great track to start your real estate investing career.

Gabe Chase · Answer

@Mack Benson Thank you so much for your advice! I will definitely make sure to double check all my numbers. Fingers crossed!