I live in southern California. I am considering a multifamily unit, but the real estate prices are high here. If I bought say a triplex, I could live in one unit and rent out the other two, but I would still have to pay my part of the mortgage, so no positive cashflow. Is it worth it doing this? Or should I consider buying in another market? Triplexes here are around $850K+ I could hold on to the property for appreciation, but I wonder just how much they would appreciate since they cost so much? Thank you
No positive cashflow, but does it reduce what you normally would pay monthly? Could you house hack and rent by the room?
@Gary Nicholson I feel your pain, I would say if you are thinking of acquiring a property for investment rather than just a "free" place to live, look out of state.
House hacking in CA specifically is for building equity in properties by the income you receive from renting out other units and using that to pay down a mortgage (increasing equity and hoping for appreciation). If you want cash flow, look out of state in my opinion. I have moved my search to only doing out of state projects simply because of the cost and the headache that comes with it.
@Matt M. Actually no. I'd be paying a lot more than what I am paying now in rent. Good point!
@Jonathan Orr Thank you. This makes a lot of sense. I really appreciate it.
@Gary Nicholson wow, 850k is a lot. that is going to be hard to cash flow. i rent out everything by the room. like one of the previous comments said, maybe this is something to consider. do you know of anyone doing it in your market?