Comparison of best cities to house hack?

[Ken Taté]

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. 

[Jake Hartnett]

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.

Good luck.