House hacking numbers
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.
@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.
@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.
