Need ideas for House Hack in an expensive market

8 Replies

I live in Miami Florida and I want to get involved in Real Estate Investing. 

How do I balance where I ideally want to live with investing in Real Estate properties? 

I love the FHA -live in one unit, rent out the rest House Hack model- but these properties seem to be too expensive here. The only large quantity of properties in my under 200k price range are studios. I cant rent out a studio while living in it! Arrrrg. What do I do? What should I consider? How to I prioritize lifestyle design and Real Estate investing?

For example... I may be able to buy a duplex in Tallahassee, Florida and make this model work, BUT I'd be sacrificing my income potential on the front end of things (from my job). 

Help wanted. 

Hey @Brock Laramee

Have you considered living in the unit for a short time frame and then moving out and using the cash flow to rent somewhere more desirable. Basically use the loan just to acquire the property faster and continue living where you would pay to live anyways. In that price range you are looking at a few duplexes in C/D class areas. In the end it is all about your tolerance. Hope this helps!

@Brock Laramee  Just set some strict (yet realistic) investment criteria and stay focused on what your goals are. The more you continue to look and network with like-minded individuals, letting everyone you talk to know what you're trying to find, I am sure you will come across the right house-hack investment. At $100,000/unit, you are on the lower-end of the market but it is very doable. I am in the market for a house-hack investment as well but focusing more on the triplex and quadplex setup. What is the criteria you're using for your investment?

@Gabe Amedee

No, I had not. That's a great idea. So the concept is live in it temporarily, then move out at first chance once I can get that unit fixed up and rented too. That will allow me to fill the whole property up and I can live in an area that I enjoy more. Thus fulfilling my lifestyle design credentials on wanting to live in an area I like. 

@Robert Saunders

It doesn't necessarily need to be house hack, I just want a property that cash flows nicely. Preferably multi-unit, but I'm okay will single family. 

I got approved for 150k through a conventional at 3.5% down and 5% interest. 

I want to go shopping with that. 

What are my options? 

The criteria being that it must be reasonably close and under 200k. So under 200k and within 30 minutes of 33165.

Originally posted by @Brock Laramee :

@Robert Saunders

What are my options? 

The criteria being that it must be reasonably close and under 200k. So under 200k and within 30 minutes of 33165.

For duplexes, I remember seeing a couple properties pop up last week around there in the $180k asking range with market rents that may get you to the 1% rule. Depending on your return requirements, that may work for you. I haven't had the need to look at traditional SFR properties lately so I'm not sure what that market is looking like right now. I wouldn't mind checking it out for you though.

Rent hack.... and invest out of state. I'm in an expensive market.... I can rent a 600k place for 22-2500 mo easy..... rent out another room for probably 1-500. The kind of cash needed to get my down to that level is significant and could be used for OOS investments. I literally could go buy a few houses cash that'd likely cover my entire rent let alone the small portion I'm actually responsible for.

Originally posted by :

It doesn't necessarily need to be house hack, I just want a property that cash flows nicely. Preferably multi-unit, but I'm okay will single family. 

I got approved for 150k through a conventional at 3.5% down and 5% interest. 

I want to go shopping with that. 

What are my options? 

The criteria being that it must be reasonably close and under 200k. So under 200k and within 30 minutes of 33165.

The only two places I can think of within 30 minutes of Tamiami/Westchester in that price range would have to be either Brownsville/Liberty City or Homestead/Florida City. Personally, I would rather live down south but I would suggest driving by both areas during day and night and seeing where you would prefer to lay your head at night. Feel free to reach out if you have any more questions. 

Happy Investing!