Skip to content
Multi-Family and Apartment Investing

User Stats

19
Posts
2
Votes
Levi Lewis
  • San Diego, CA
2
Votes |
19
Posts

House hacking numbers

Levi Lewis
  • San Diego, CA
Posted Jul 17 2019, 20:14

Im looking for my first property to be a MF, triplex mainly. Now if I run the numbers and break even after renting out the other 2 units while living in one, wouldn't my "no more rent" costs be considered cash flow? Im currently saving and waiting since my market (San Diego) is a PITA to buy in...at least for me anyways.

User Stats

5,809
Posts
4,853
Votes
John Warren
  • Real Estate Broker
  • 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
4,853
Votes |
5,809
Posts
John Warren
  • Real Estate Broker
  • 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
Replied Jul 18 2019, 03:24

@Levi Lewis I have my house hacking clients run numbers as though the property was a pure investment. I then have them run numbers as though they are in one of the units. This allows them to see how the property will perform if/when they move out, and it helps quantify how much benefit they are getting by living in the property for "free". Essentially, that free rent is one of the most powerful things as you are getting the equivalent of income but with no tax consequences. A lot of people don't understand how powerful that really is early on in your career. 

  • Real Estate Agent IL (#475.166619)

Forte Properties, Inc Logo

User Stats

19
Posts
2
Votes
Levi Lewis
  • San Diego, CA
2
Votes |
19
Posts
Levi Lewis
  • San Diego, CA
Replied Jul 19 2019, 05:17

@John Warren yeah that's what I'm thinking. I think being rent free is going to help me BIG time, and the easiest way for me to start.

BiggerPockets logo
Find, Vet and Invest in Syndications
|
BiggerPockets
PassivePockets will help you find sponsors, evaluate deals, and learn how to invest with confidence.