Potential first home as house hack

[Ian Muller]

Hi All,

I am looking at getting out of renting and doing a house hack. I have found a home with an in-law suite and three other bedrooms in the home. I have been living with roommates in rentals and have become motivated to do the same but actually own the place. 

I am in Billings, MT. After talking with local investors at several real estate meetings the market is always slow and steady here. So I don't see a reason to wait for any kind of down turn because the place is isolated and was during the 08 downturn.

I am able to avoid PMI and the mortgage/tax/insurance would be about 1400. I think the three rooms could be rented out for a sum of 1550+utilities. Granted there are utility, capital, and vacancy to still consider which means I will end up paying a few hundred a month but that is less than the 550 I've been paying for rent. And could be getting some principal out if I were to buy a home.

I have been having a hard time convincing myself to push through and buy something to do a house hack. But this latest find is enticing because of the in-law suite I could live in. 

I'd really appreciate some advice or suggestions on if I should go through with this or not. Maybe I'm not considering something very important. 

Thanks

[Mike Ormsby]

Hi Ian.  Did you pull the trigger?  Interested in hearing what happened.  I hope you did, as I think it's better to be in the game as opposed to the sideline, waiting.  I'm in Billings and am a Realtor.  I think the thing I would be most careful about is the location, and also believing that the market won't go down here.  I do agree we are somewhat insulated as we don't experience the sky rocketing prices some places have and hence won't have the huge downward push during a crash.  But, I can show you some stats in certain price ranges in our area that suggests that we are already trending down a bit.  Hit me up if you want to chat.