House Hacking Tips

House Hacking Tips

Troy, NY · Member since 2016 · 15 posts · 2 votes

Hello All - Newbie investor here, I have been studying and learning for the past few months and I am getting ready to make my first jump into the world of real estate investing. I am looking to purchase a multi-family property and plan to owner occupy. My ultimate goal is to be able to cash flow (or break even) the property while I live in one of the units.

I am in the Albany/Troy, NY area and this area has a large amount of multi-family properties selling for anywhere from $50-250K. I am looking for any tips from more experienced investors who have followed this strategy to get their feet wet in the investing world. 

I am hoping we can start a nice discussion on house hacking techniques/tips and hopefully some experienced investors can jump in and share how they did it, what they would do differently, etc.

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Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
10y

Hi, @Thomas Ebenhoch,

Be careful with duplexes. They are hard to cash flow as a house hack or pure investment, because you're spreading the expenses across only 2 units.

Don't settle on a crappy neighborhood just because the price looks good. Remember you'll be living there.

You're a landlord 1st and neighbor/friend/therapist 2nd.

Screen applicants just as stringently as if you weren't living in the property. You'll thank yourself later.

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  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    10y

    Hi, @Thomas Ebenhoch,

    Be careful with duplexes. They are hard to cash flow as a house hack or pure investment, because you're spreading the expenses across only 2 units.

    Don't settle on a crappy neighborhood just because the price looks good. Remember you'll be living there.

    You're a landlord 1st and neighbor/friend/therapist 2nd.

    Screen applicants just as stringently as if you weren't living in the property. You'll thank yourself later.

  • Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    10y

    Hi @Thomas Ebenhoch

    I am also looking to owner occupy first first home- 

    Your best chance of cash flow is a fourplex, followed by a tri plex and lastly a duplex.. more units = higher chance of cash flow

    When you analyze a duplex or a multi, make sure you analyze it with you living in the property as well as you not living in the property.. The property should cash flow once you move out- 

  • Troy, NY · Member since 2016 · 15 posts · 2 votes
    10y

    @Jaysen Medhurst, thank you for your response. The Capital Region is unique in that you can buy properties for 100-200K, while rent in a decent area can be anywhere from 900-1300/month. I fully agree with you, however, on maximizing the number of units.

  • Troy, NY · Member since 2016 · 15 posts · 2 votes
    10y

    @Jaysen Medhurst, thank you for your response. The Capital Region is unique in that you can buy properties for 100-200K, while rent in a decent area can be anywhere from 900-1300/month. I fully agree with you, however, on maximizing the number of units.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Thomas Ebenhoch

    Welcome. 

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

    Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul 

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