I’m looking to get into my first home. I want to find a home where I can live in the top and rent the basement. Would it be better to find a home like that or buy a townhome live in it for a year then rent it out then buy another townhome and continue to do that over the years building up a portfolio?
Real Estate Agent · Fleetwood, NY · Member since 2018 · 264 posts · 235 votes
6y
@Elijah Bryant In my opinion, the first option is much better because you can still choose to move out after the year and do it again. It usually always makes sense to house-hack and collect some rent to go towards your mortgage.
You could even rent out rooms instead of renting out units. For example, buying a single family home with 3 bedrooms and renting out 2 bedrooms as you live in the other. May be a bit harder to find a tenant that way because people prefer their own space, but there are a ton of people who do it.
@Joe Aiola thank you so much! Yes I’m looking to rent the basement out for privacy as well room for. Y family upstairs. So you think it’s better to house hack rather than move from town home to town home renting them out?
The first option is better, especially if the basement is separated from the rest of the house. It allows you to have two rental units once you move out. also look at duplexes. With townhouses or condos, you have extra fees from the HOA/condo association and the potential for them to restrict rentals. Plus some of them are not well run and will cost even more in special assessments.