Seattle, WA · Member since 2014 · 12 posts · 2 votes
I was wondering if there is a resource on here that has general information on which markets are the best to be in for house hacking a multifamily unit? I personally wanted to compare the areas in and surrounding Los Angeles, St. Paul, and Miami.
I have been doing a lot of research in St Paul and Minneapolis and from what I can see the best deals are in St. Paul, though it will be tough to find a bona fide 2% rule except maybe in the toughest neighborhoods. Rent prices are fairly consistent throughout the cities but property values vary widely, so in general the cheaper the property, the better the cashflow.
S MPLS is basically off limits because values are too high, though you might be able to find a deal in Powderhorn or Phillips. NE still has potential, but there has been a lot of activity up there in the last 5 years, so there aren't the same great deals there anymore. North has a lot of potential but the neighborhoods are block by block so be careful. I think there is a lot of potential to force appreciation in North by cleaning up the neighborhood: organize trash cleanups, organize block parties, neighborhood watch, mow lawns of vacant houses, get active in other community building organizations etc.
In Saint Paul the up and coming neighborhoods I see from most to least gentrified are: Midway, W 7th, W St. Paul, Southern Penn Ave in E St. Paul, and Frogtown.
The most important question for a house hacker is how much BS are you willing to put up with (burglaries, assaults on your block, etc.) compared to what kind of cashflow you are looking for, as well as what part of the city do you want to live in? Family friendly, quiet St. Paul? Easy access to bars and clubs and cultural amenities in Uptown and Downtown MPLS etc.
I can't speak to the suburbs, I don't want to live there so I have not done any research. Also, there seems to be a reverse urban flight happening, where more and more people want to move into the cities gentrifying previously seedy neighborhoods. This is driving property values up throughout the cities and pushing some poverty and crime to the inner ring suburbs, so I would be careful about which direction any suburbs are heading before you invest there.
Unfortunately your question is too broad and I'm afraid the resource you're looking for probably doesn't exist.
The problem is, house hacking isn't successful based on the market you're living in. House hacking, as well as all RE investing, is determined by the numbers on each individual property. That being said, I would imagine it is much easier to find a good house hacking situation in St. Paul than in either Miami or Los Angeles but I don't invest in any of those markets so I can't say for sure.
St Paul is great. It's really like a mini Chicago with out the big city hassles.
Plug in addresses with # of bedrooms in here and compare rents - you'll see what I'm talking about. www.rentometer.com
Macalester, U of Minn, Concordia, St Catherine, Hamline, St Thomas… and on and on… ALL within about a 10 mile or so radius (or less)? The ratio of rent to cost of duplex or triplex are not as wide as other bigger cities.
@Ken Taté I would say St. Paul is one of the top places to house hack in the Twin Cities Region from a purchase price to cash flow stand point. I decided to house hack in the uptown area of Minneapolis, because that is where I wanted to live. Best of luck!
I have been doing a lot of research in St Paul and Minneapolis and from what I can see the best deals are in St. Paul, though it will be tough to find a bona fide 2% rule except maybe in the toughest neighborhoods. Rent prices are fairly consistent throughout the cities but property values vary widely, so in general the cheaper the property, the better the cashflow.
S MPLS is basically off limits because values are too high, though you might be able to find a deal in Powderhorn or Phillips. NE still has potential, but there has been a lot of activity up there in the last 5 years, so there aren't the same great deals there anymore. North has a lot of potential but the neighborhoods are block by block so be careful. I think there is a lot of potential to force appreciation in North by cleaning up the neighborhood: organize trash cleanups, organize block parties, neighborhood watch, mow lawns of vacant houses, get active in other community building organizations etc.
In Saint Paul the up and coming neighborhoods I see from most to least gentrified are: Midway, W 7th, W St. Paul, Southern Penn Ave in E St. Paul, and Frogtown.
The most important question for a house hacker is how much BS are you willing to put up with (burglaries, assaults on your block, etc.) compared to what kind of cashflow you are looking for, as well as what part of the city do you want to live in? Family friendly, quiet St. Paul? Easy access to bars and clubs and cultural amenities in Uptown and Downtown MPLS etc.
I can't speak to the suburbs, I don't want to live there so I have not done any research. Also, there seems to be a reverse urban flight happening, where more and more people want to move into the cities gentrifying previously seedy neighborhoods. This is driving property values up throughout the cities and pushing some poverty and crime to the inner ring suburbs, so I would be careful about which direction any suburbs are heading before you invest there.
Make sure you watch rentomenter as in my areas I operate it is "way" off.
Everyone has there different opinion but I would say the best rent hack situation is a place where roommates get a high rent. The are I live now and Virginia Beach rooms including utilities were only $500. So even 3 rooms at $1500 barely covers the rent let along the utilies. Where as LA that could be $1200 a room so that $3600 plus yourself. Even with expensive houses that is still possible to be covered.
So to sum it up its that fine line between high "room rents" and reasonably cost houses. The higher the house as long as it fits the room rate, the more someone else is paying your mortgage, as long as you can live rent free or close to it.