I have decided to purchase a multi family as my 1st investment property and live in it. My question is when you are house hacking what is the goal? Do I want to make sure that the other unit(s) will completely pay the mortgage or half the mortgage? The area I'm in is expensive and I want to make sure that I'm not buying something that is not worth it. Any advice will be appreciated!
The IDEAL scenario is to have the tenant's rent pay for your mortgage. However, that is not the case in certain markets, i.e.. NYC, San Fran, Denver etc. Noticed how those markets just named are very expensive. In those markets the rent may only cover 1/2 or 1/3 of your mortgage, which is ok. That is a percentage of your money you get to keep in your pocket.
You can do one of two things. You can either do your research to see what the average rent is in your area and if your property is highly desirable, charge a couple of hundred dollars more than the average. The second alternative is list the rental as high as you think its worth. If you are not getting any bites, lower it down piece by piece until the calls start to come in. If the number you reach where it cover a decent amount of your mortgage then you are good to go.
@Brian Adzadi Thanks for the response!! Sounds like what I have been thinking.
I live in Fairfield County as well, and in my opinion the goal here is to find a house hacking situation where the portion of the mortgage (PITI) that you have to pay yourself ends up being less than what you would pay if you were renting.
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