Hi, this is probably a very beginner question, but I'll aks it anyways. I'm looking for a house hack in my area and none will cash flow positive if I occupy part of the residence. Should I be looking for a unit that cash flows positive while I occupy, or is it standard to sometimes pay a small amount until I can cash out re-fi into another property or move out and rent my space. Thanks for your help.
@Brendan Anderson , if it cash flows when you do not live in it you are good. If you found one that cash flowed while you lived in it that would be incredible.
Look at it this way. what do you pay for rent now? Let's just say 1000/month. If you find a property that while you live in it produces a -400/month cash flow you just removed 600 from your monthly expenses while paying down a house. Those numbers are made up and not for your market but hope that helps you get on track.
I would try to buy a place where you are comfortable paying the mortgage. Then you can open it up for house hacking because you have to be prepared in the current scenario that it will be tough to find tenants by room.
The overall goal is to reduce your housing expense after accounting for all expenses and reserves. If it does that, it's a huge win. I would not buy however if it does not cash flow to your desired investment level. You may also need to search outside the area a little bit or potentially less desirable areas if that achieves your overall financial and lifestyle goals.