House Hacking for First House

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House Hacking for First House

Dan Turkel
Real Estate Agent · Central New Jersey · Member since 2017 · 135 posts · 37 votes

Hi everyone - first post here!

I'm currently debating on whether or not my fiancee and I should rent for the next couple of years or house hack in Staten Island, NY. Here's our situation:

- She is in a residency program and will be making $15k per month once she finishes in two years from now. As of now, she's making ~2.5k per month

- I have a job secured for the next 2 years and make about $2,000 per month. 

We're considering renting for the next 2 years paying $2k per month in rent during that time.

Based on the rental rates and house prices I've seen in Staten Island, I'm not sure if it's worth going through with house hacking if we know we're going to move across the country 2 years from now and also have a much higher income then (and would very quickly make back whatever cashflow we would have gained if we had house hacked). I also don't feel comfortable with the idea of eventually renting an entire duplex out when I'm thousands of miles away from it once we move. 

I'm new to all of this and would really appreciate someone running through the numbers and theory with me to enable me to better understand whether or not it would make sense for us to house hack now. 

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  • Allen Fletcher
    Investor · Colorado Springs, CO · Member since 2015 · 252 posts · 131 votes
    9y

    @Dan Turkel

    What are your RE goals? Why are you looking to invest? Where do you see yourself in 5 years time? If you can clearly, concisely, and exactly answer these questions then you have the framework already in place to provide you the guidance you are seeking. If you cannot answer these questions figure out the answers and then measure your conundrum against those stated goals and you will be able to figure out what path is best for you and your fiancée.

    As a general note, I would avoid renting in a place that consumes 44% of my monthly income ($2k/$4.5k) as this will put a lot of strain on your finances during the next two years. I would try to find housing that costs no more than 30% of my monthly income (to include all utilities). This will reduce the chances that a financial setback will carry catastrophic consequences for your financial well-being.

    Hope this helps,

    Allen Fletcher

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  • Matt B.
    Investor · Bethlehem, PA · Member since 2016 · 229 posts · 122 votes
    9y

    @Dan Turkel I would recommend you house hack and then rent out the entire property when you move. This is NYC, there are hundreds of property management companies who can handle your rental when you move away, you will simply have to manage the manager. Alternatively, you can have another member of BP help you out who has experience managing properties when you move out of the state.

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  • Louise A.
    Investor · Seattle, WA · Member since 2011 · 253 posts · 112 votes
    9y

    @Dan Turkel

    My two cents is to pay attention to your gut.  2 years is a short time frame to buy, especially when the market is overheated and may have nowhere to go but down.  You're not comfortable managing from afar on your first property.  There's nothing wrong with that.  You can be successful and stay within your comfort zone.  Save money now so that you're ready for the house hack when you have a little bit more time to live in it!  Feel free to contact me with any other questions.  I'm house hacking currently and building my portfolio.  

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  • Dan Turkel
    OP
    Real Estate Agent · Central New Jersey · Member since 2017 · 135 posts · 37 votes
    9y
    Thanks for the replies, everyone! Louise Alexander , your advice has put me at ease - thank you! I think we're going to just rent for the next couple of years.
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