New to Investing: Should I House Hack or pursue another strategy?

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New to Investing: Should I House Hack or pursue another strategy?

Brady Herbaugh
Member since 2024 · 3 posts · 9 votes

Hello BP, I’m new here my name is Brady. My wife and I are traveling healthcare workers. I work in CT Radiography and she is a CNA. We are looking to buy a multi family property close to where we are from for the first investment. We are from North Dakota but have family in Minnesota as well. Since we will likely be on the go but can have our permanent address be set at the property we purchase. I’m curious if house hacking would work best? Maybe there’s another strategy that might benefit our unique situation. 
Thanks in advance 

Brady 

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Austin Steed
Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
2y

Big fan of house hacking! I started doing it in 2019 in columbus. 

Talking with a good lender would be a good place to start

4Reply
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Brady Herbaugh

    definitely a house hack. it's a great way to get started. talk to some lenders and go from there.

    4Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    2y

    Agreed on house hacking. Great entry way in. Find a 2-4 unit place. You shouldn't have issues qualifying for it

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    2y

    House hacking is the best way as allows you to get in with a low down payment. I started with a house hack and re-used that equity later on to get to 10 rental units. The hardest thing in 2024 is finding cashflow though, most of the nice areas have very low COC if you can even find positive but its always better to start then never get your foot in the door

    1Reply
  • Brady Herbaugh
    OP
    Member since 2024 · 3 posts · 9 votes
    2y
    Quote from @Henry Lazerow:

    House hacking is the best way as allows you to get in with a low down payment. I started with a house hack and re-used that equity later on to get to 10 rental units. The hardest thing in 2024 is finding cashflow though, most of the nice areas have very low COC if you can even find positive but its always better to start then never get your foot in the door

    In Minneapolis there’s opportunity for cash flow and in Fargo where we lived for 13 years there’s cash flow. So we just gotta find the right property for the right price. 

    1Reply
  • Connor Hibbs
    Lender · Ellington, CT · Member since 2024 · 210 posts · 103 votes
    2y

    House hacking is a great way to get started.

    1Reply
  • Genesis Duncan
    Rental Property Investor · Portland, OR · Member since 2023 · 17 posts · 27 votes
    2y

    Hi Brady, I was sort of in your shoes a year ago! We purchased a house hack in Portland, Oregon. Technically a SF, but we have an ADU on the property that we live in and rent out our main house.

    I love the fact that my tenants are paying most of our mortgage and if you benefit from those duplicating expenses in traveling healthcare, I'd imagine it will enrich you in more ways than just your tenants covering your costs. I also think it's great that our property isn't sitting empty when we're gone and because we own and live on-site, our neighbors also keep an eye out for us. 

    2Reply
  • Trevor Schmitt
    Rental Property Investor · Fargo, ND · Member since 2017 · 129 posts · 107 votes
    2y

    @Brady Herbaugh I am in the Fargo market and invest here locally. A house-hack is how I got started! I also help clients throughout ND and MN. Would love to set up a chat! 

    1Reply
  • Bryon AndrewsBusiness Member
    Real Estate Agent · Saint Paul, MN · Member since 2018 · 201 posts · 104 votes
    2y

    House hacking would be great! When you travel, you can then rent out your unit as a furnished rental. This can provide you with the benefits of investing as well as the flexibility that you are looking for. 

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  • Austin Steed
    Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
    2y

    Big fan of house hacking! I started doing it in 2019 in columbus. 

    Talking with a good lender would be a good place to start

    4Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Will beat the dead horse here: definitely house hack. It is one of the best ways to get started with low money down. Easiest barrier to entry. 

    Good luck!

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  • Jana Crum
    Realtor · Phoenix, AZ · Member since 2017 · 117 posts · 78 votes
    2y

    Hey Brady, you guys are in a great position to house hack a multi-family property! I'd also suggest doing furnished STR/MTR for the unit you guys take so you can maximize your profit.

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Brady Herbaugh

    House hacking is a way to offset mortgage payments with rental income, potentially covering housing costs and building equity. It can be done with FHA loans, short-term rentals (Airbnb), long-distance landlording, live-in flips, or partnering with family. For more passive income, research local markets, financing options, and property management strategies. Connect with a real estate agent specializing in investment properties in your target areas.

    Good luck!

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Brady Herbaugh:

    Hello BP, I’m new here my name is Brady. My wife and I are traveling healthcare workers. I work in CT Radiography and she is a CNA. We are looking to buy a multi family property close to where we are from for the first investment. We are from North Dakota but have family in Minnesota as well. Since we will likely be on the go but can have our permanent address be set at the property we purchase. I’m curious if house hacking would work best? Maybe there’s another strategy that might benefit our unique situation. 
    Thanks in advance 

    Brady 


     A house hack would be great. You could also airbnb your unit when you are traveling to make extra money

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  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    2y
    Quote from @Brady Herbaugh:

    Hello BP, I’m new here my name is Brady. My wife and I are traveling healthcare workers. I work in CT Radiography and she is a CNA. We are looking to buy a multi family property close to where we are from for the first investment. We are from North Dakota but have family in Minnesota as well. Since we will likely be on the go but can have our permanent address be set at the property we purchase. I’m curious if house hacking would work best? Maybe there’s another strategy that might benefit our unique situation. 
    Thanks in advance 

    Brady

    Hey Brady,

    From a lender's point of view, you would need to have some intention of living in the property. You would at least need to move in within 60 days of closing otherwise it is loan fraud. I'd recommend you pick a place to live when you are on a longer contract that you expect to be in place for a year. If your contract changes you would still be ok as long as it's reasonable that you would have lived there for the full year. 
    0Reply
  • Brady Herbaugh
    OP
    Member since 2024 · 3 posts · 9 votes
    2y

    We would plan to live there as our permanent address for a full year. That way when we have time off we actually have somewhere to go instead of staying with family or in-laws. Thanks for the advice it’s much appreciated. 

    1Reply
  • Andrew Kessler
    Rental Property Investor · Akron, OH · Member since 2021 · 31 posts · 19 votes
    2y

    House hack all the way! I've done this 3x with great results. One of my best friends just did this with his spouse. They are both traveling nurses and used an FHA loan to purchase the property with low money down. He uses one of the units to live in when he is in the area and to fulfill the 1-year duration he has this as his primary. Good luck!

    1Reply
  • Tim Casey
    Real Estate Consultant / MBA · Orlando, FL · Member since 2023 · 13 posts · 14 votes
    2y

    House hacking sounds like a great fit for you—buying a multi-family, living in one unit, and renting out the others can help cover your mortgage while you’re on the go. Another option to consider may be investing in a turnkey property with solid management, allowing you to earn passive income without being tied down. Best of luck!

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    2y

    @Brady Herbaugh- thanks ...a house hack where you live in the property you buy is the best step to take for your 1st investment...make sure you get pre approved  for a loan before you begin to search for a property  

    0Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    2y

    @Brady Herbaugh

    If you decide to house hack, set up a separate bank account to deposit the rental income and pay rental related expenses. Use software to track the income and expenses. 

    Good luck. 

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    1Reply
  • Madri Koppe
    Interior Decorator · CA · Member since 2020 · 78 posts · 30 votes
    2y

    House hacking makes a lot of sense! That’s how I got started and plan to rent out a new addition as a MTR. 

    1Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Brady Herbaugh I’ve house hacked for close to 3 decades. Strongly recommend it.

    If you’re up for the challenge buying a new property to house hack every year or year and a half is a great way to quickly build a portfolio.

    My recommendation for this strategy is to minimize the amount of possessions you have so it’s easier to pick up and move frequently. If you’re traveling professionally it may be easier to keep less stuff at your home base naturally because you’re not living there day in and day out.

    Get the revenue from each property on your taxes as soon as possible so you’ll be able to qualify easier for future loans.

    1Reply
  • Taz Zettergren
    Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes
    2y

    @Brady Herbaugh I would 100% recommend you to house hack in this scenario. It enables you to take advantage of a smaller, if any, down payment while owning/controlling a piece of real estate. As you grow and if you want to continue pursuing real estate investment there are turnkey options that would benefit you but to start I would do it myself. That's how I started and the only regret I have was not doing 1-2 more primary houses before going straight into investment properties. Maximize that low to no money down option. Best of luck! 

    2Reply
  • Steve Seger
    Investor · Cincinnati, OH · Member since 2023 · 8 posts · 5 votes
    2y

    @Brady Herbaugh I’m in a similar situation, currently saving for my first house hack, and I agree with the comments above. House hacking is a fantastic strategy, especially for beginners. It’s often described as the “training wheels” of real estate investing, as it allows you to get into the game with minimal risk. Sounds like it would be a great fit for you. 

    I'd also recommend checking out The House Hacking Strategy by Craig Curelop. It’s an excellent guide for people starting out with House Hacking. Best of luck! Feel free to reach out if you ever want to discuss more.

    1Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    House hacking is a great way to get started and it's even an option at any point in your life (take it from me - life happens!) You don't necessarily need a multi-family property to house hack, particularly in your situation. Some people absolutely don't want others in their personal home, but if that's not an issue for you you could also consider renting out your primary as an MTR when you and your wife are traveling. That's what I'm doing with mine now. I have a primary home in CA, but I'm traveling for the next couple of months so I'm renting it out. It takes a little work to move your personal belongings out (paperwork, photos, special items), but it's worth it to have someone covering my mortgage and then some while I travel. In my case, I have a 4/2. I've put all my belongings in one of the bedrooms, locked it up, and rent the house out as a 3/2. It's working out great. Just something for you to consider if MF is more than you can bite off to begin with. Good luck to you!

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  • Timothy Harstead
    Chicago, IL · Member since 2024 · 17 posts · 9 votes
    2y

    Depending on how often you are there or if you are out of town 90 percent of the time, you may be able to do a short-term rental with your unit and rent the rest long-term so you are still getting income from your apartment while not being there.  but yes a house hack allows you to put down as low as 5% just make sure you have some reserves incase something goes haywire the first year 

    1Reply
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