Analyzing house hacks

[Alex Medina]

What am I doing wrong?

I’m trying to figure out how to analyze a house hack. I’m moving to Denver, CO. And I’m looking at house hacks and I can see it working with me living in the home, but the rent in the area won’t support the home if I were to move out.

Is this common?

I don’t want to be over leveraged on my house hack that it slows me down in other investments.

I appreciate the help!

[Ben Rhodin]

Hey @Alex Medina! This is definitely a common question and one I have to work through with many clients. What type of House Hack are you looking at? 

What you are most likely realizing is that the price-to-rent ratios just don't support typical long-term rentals here in the Denver Area. If you want an investment property that cash flows, you have to get creative with how you rent the property. without knowing exactly how you are planning your house hack/move-out rental I'll have to imply some things. Luckily there are numerous ways to still make a cash-flowing rental property here in the Denver Metro area. For example, you could split the property into multiple livable areas and rent them separately, you could maintain a rent by the room strategy, if you buy in an area that allows it you could do an STR, or possibly an MTR. As everyone loves to say nowadays, you don't buy a deal, you make a deal.

It is most important to find yourself an Investor focused agent here in Denver, who also invests and knows how to make these properties work. Not only for when you live there but also for when you move out!