Out of State Purchase on First House? [House Hacking]

Out of State Purchase on First House? [House Hacking]

Member since 2022 · 6 posts · 8 votes

Hey BP community!

Question: I’m moving from the Northeast to the DFW area by the end of the year, and I’m excited to start my investing portfolio with house hacking (purchasing a SF and renting out to roommates). My goal was to purchase a house while I’m still living in the NE with the help of an agent and maybe a few visits down to the area. My parents, who I still currently live with, recommend that instead I rent an apartment for a few months to a year in DFW to get to know the area better and search for a “dream” house before buying. (Their concern is my purchasing my first home out of state.) I do want to rush into house hacking because I’ve gotten so excited about it and bc I’d like to save some money, but I’m wondering if it really could make sense to rent  in the area for some months to better get local context before purchasing. Is there value in doing so? My ultimate goal is to live in the SF for a couple years before converting it into a full rental. I’d appreciate any general advice as to how I should think about this. 

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  • Real Estate Agent · Dallas, TX · Member since 2021 · 27 posts · 19 votes
    4y

    @Aanu Jibodu, great to meet you and welcome to the BP community! DFW is a great place to live and personally I think house-hacking with roommates is the best way to start your RE investing journey. I definitely understand where your parents are coming from and think that there is value to knowing an area before you make a long term decision. I will say that if you have the right local agent who understands your goals that they can really point you in the right direction. The other thing to think through is that if the goal is to turn this into a long-term rental then that should be your primary driving factor. You should be thinking less about purchasing your dream home and more about how the rental will perform long term. Thankfully a great long-term rental should also be a place that you are excited to live in. There is absolutely risk in investing in something long distance but with the right agent and a long term perspective, I think you could go for it and start your investing journey!

  • Real Estate Broker · DFW · Member since 2015 · 350 posts · 270 votes
    4y

    Some of your parents concerns are valid... however a lot of them aren't. Your first house isn't going to be your dream home, and if your goal is to convert to a rental you are going to have much different goals (cash flow) instead of having a house look nice and be your "dream home". 

    I've been house hacking (rent by the room) in the DFW area for the last four years and my biggest regret was not jumping in sooner! 

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