First House Hack Advise

[Cody Godfrey]

I posted this in another thread but hoping to get as much input as possible. I need some advise from other experienced investors that might’ve started their investing career with house hacking.

My wife and I are close to agreeing on getting a duplex under contract in a good market. We would live in the smaller of the two sides and rent the other side out for 1000 a month. It’s a 2 bed 1 bath that could pretty easily be converted to a 3 bed 2 bath unit and rent for around 1400. The side we would be living in is a 2 bed 1 bath with a finished basement and could rent for 950-975. The purchase price would be $212,000 and the seller would be paying 3% of closing costs.

My question is, obviously at that price this isn't a property that we will cash flow on while living there but, we would gain landlord experience and live cheaper than renting. I calculated roughly sending 800-900 per month after all expenses such as all utilities, PITI, repairs, etc.

Is it worth losing a little money each month to live in a nice house that we actually own as opposed to renting? We would obviously live cheaper than renting somewhere.

Also, upon us moving out of the duplex I estimated we could cash flow anywhere from 200-600 per month depending on if I kept a two bedroom or converted it to three.

Any input is greatly appreciated!!!

[Andrew Angerer]

While it has been said on here many times that you don't become rich on your first deal. Think of it this way, can you find a better place to live in for what you would have to pay to live in your investment, minus the tenants income? If there are no places that are as cheap as that, then it is a good idea to live in the one half  while your tenant "subsidies" your living costs. 

For example, I rented out a room in my SFH, but the tenant only paid enough for the mortgage plus some utilities. However, I only paid around 25$ a month on my end. Where on earth can you find a nice place to live for 25$?? Granted I didn't become rich on this ordeal, and I did find a few ways to increase the rent to even it out.

I would say as long as you aren't losing a ton of money, it should be a good idea. Just always look for ways to value add the property, and do not be afraid in this market to ask for a little bit more on rents, you may just get lucky.

Hope this helps,

Andrew