Rookies to House Hacking
Member since 2026 · 2 posts · 9 votes
Rookies to House Hacking
Most Popular Reply
Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votesQuote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
I started my real estate investing journey by house-hacking and now have 30 rental units here in Columbus. House-hacking every year and doing the brrrr model for a few years definitely gets you a long way.
House-hack in california and buy brrrrr deals in the midwest. Homes are cheaper, in a land-lord friendly state, and tech companies investing have boosted the economy.
ReafCo | Ahmed Group 533 Reviews
14 Replies
- 4moAmit PatelBusiness MemberProperty Manager · Bartlett, IL · Member since 2025 · 170 posts · 67 votes
Smart move starting with education and paying off debt first. House hacking in the Bay Area and out to Tracy can work, but prices are high so cash flow is usually tighter than people expect.
Focus on learning how to run real numbers early — including vacancy, maintenance, reserves, and taxes. The best deals are the ones where at least one unit can cover most of the mortgage after expenses.
Since you’re planning to talk to lenders in 2028, start building those relationships now with people who understand multi-unit loans. Tracy and further East Bay areas often give better cash flow than closer-in spots, but check rental demand in the specific neighborhoods.
Casanomy Property Management561 Reviews - Real Estate Consultant · San Francisco, CA. · Member since 2026 · 59 posts · 16 votes4mo
Hello Charlotte,
Sounds like you are on the right track!
You're giving yourselves plenty of time to pay down debt, learn the market, and build a strong team before making a purchase.
I've sold multiple homes in Tracy, and it's a market that's been on many investors' radar because it can offer more attainable entry points than much of the Bay Area. That said, every neighborhood and property type is different, so it's worth spending time understanding rental demand, local trends, and your long-term investment goals.
Out of curiosity, are you hoping to house hack a duplex, triplex, fourplex, or even a single-family home with extra bedrooms?
Happy to connect if you'd like to exchange ideas as you get closer to your timeline!
- 4moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
Go to networking events to network with investors and other people in the industry
Brick House CPAs53 Reviews - 4moMichael K GallagherBusiness MemberReal Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
welcome, these forums are exactly where I turned when I found myself considering a duplex in 2018, that decision continues to pay dividends every year. There will be many nay sayers around you, ignore them, you are setting up future you in a big way!
- 4moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
I started my real estate investing journey by house-hacking and now have 30 rental units here in Columbus. House-hacking every year and doing the brrrr model for a few years definitely gets you a long way.
House-hack in california and buy brrrrr deals in the midwest. Homes are cheaper, in a land-lord friendly state, and tech companies investing have boosted the economy.
ReafCo | Ahmed Group 533 Reviews - 4moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
Quote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
Great starting point, and you’re doing the right thing by learning first and paying down debt. House hacking in the Bay Area or even out toward Tracy can work, but the biggest challenge is simply affordability and cash flow with those price points. One thing to keep in mind is you don’t have to limit yourself to your local market, many first-time investors start in more affordable Midwest areas where house hacking numbers are often much easier to make work and still give you real monthly cash flow. Keep building knowledge now, stay disciplined with debt payoff, and when you’re ready to run numbers in 2028, focus on where the deal actually performs, not just where it’s located.
- Real Estate Broker · Laguna Beach, CA · Member since 2026 · 7 posts · 1 vote4mo
You are doing the right thing by learning early and cleaning up debt before you start talking seriously with lenders.
In higher-cost California markets, house hacking can work, but the numbers have to be treated very carefully. I would spend this time learning how to compare the full cost of ownership against realistic rent, not best-case rent. Taxes, insurance, repairs and vacancy can change the picture quickly.
I would also start watching the difference between areas now. San Jose, the East Bay and Tracy can behave very differently for price, commute realities and rental demand. By 2028, you will have a much better feel for where the tradeoffs are.
When you do get closer, talk with a lender who understands owner-occupied multi-unit purchases and an agent who can help you look at the property as both a home and an investment. That balance is where house hacking gets tricky.
Hi Charlotte from San Jose, California-
Great question Your fiancé and you are looking into house hacking in the Bay Area while you are paying off debt to get started with real estate and I think that is a great plan.
Look into real estate related services as additional income streams to help you save and pay down debt. You can even find reliable help and you sell the jobs of cleaning, mowing, landscape, pest control, roofing, and similar.
If you don't like the idea of sharing rooms in your house with others, consider starting with a duplex or a small house with an ADU. You can also possibly rent out storage space in your garage or parking in the driveway. Just make sure you have insurance that covers this activity.
To Your Success!
- 4moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 661 votes
Hello Charlotte,
You're doing the right thing by learning now while paying off debt. One thing I'd add from my 0ver 40 years experience as a Realtor, investor and property manager is don't overlook the repair side of things. Construction and repairs can quickly turn into a nightmare if you don't have good people to call.
So, start building relationships with contractors you can trust now, and even better if you know someone personally who can recommend or help with reliable contractors. It can save you a lot of money, stress, and headaches later. I wish you the best of success!
Spark Rental Co-Investing Club584 Reviews - 4moWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
The fact that you have been making payments on your debts while attending college is great because this will make you more prepared when you begin buying your house. It would be wise for you to take some time now and do some research on rent costs, financing, and neighborhoods since it can be tough in the Bay Area.
Good luck!
NETWORTH BUILDERS5236 Reviews - 3moRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
One thing that helped during our research was separating the idea of a great house hack from a great long-term investment. In higher-cost markets, it's easy to focus on getting into the first deal, but I found it just as important to ask whether I'd still be happy owning that property 10 years later if I moved out.
We've been comparing markets every week, and while places like Cleveland and Jackson stayed on our list for different reasons, what surprised us was how much time we spent underwriting deals before realizing acquisition basis was driving almost every future decision. That changed how we looked at properties.
Curious what your goal is after the first house hack. Are you hoping it becomes your first long-term rental, or mainly a stepping stone into a larger portfolio?
Section 8 Launch52 Reviews - 3moMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votesAs someone who was born and raised in San Francisco, I'll tell you it's tough in the Bay but doeable. If you can find a spot that will also allow you to build an ADU in the backyard, do it. That would be a great way to start house hacking.
Quote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
Reafco - Mike Paolucci 512 Reviews- Member since 2026 · 2 posts · 9 votes3moHi Mike! Thanks so much for your comment. This is something my fiancé and I have taken into consideration. I live in the east Bay so I’m highly aware of how expensive it is here we are open to searching different scopes to find what will fit in our buying power thank you again for the heads up and advice for the ADU!
Quote from @Mike Paolucci:
As someone who was born and raised in San Francisco, I'll tell you it's tough in the Bay but doeable. If you can find a spot that will also allow you to build an ADU in the backyard, do it. That would be a great way to start house hacking.Quote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
Quote from @Charlotte Morelos:
Hi Mike! Thanks so much for your comment. This is something my fiancé and I have taken into consideration. I live in the east Bay so I’m highly aware of how expensive it is here we are open to searching different scopes to find what will fit in our buying power thank you again for the heads up and advice for the ADU!Quote from @Mike Paolucci:
As someone who was born and raised in San Francisco, I'll tell you it's tough in the Bay but doeable. If you can find a spot that will also allow you to build an ADU in the backyard, do it. That would be a great way to start house hacking.Quote from @Charlotte Morelos:
Hello! My fiance and I are driven to learn more about the ins and outs of house hacking in the Bay Area as far out to Tracy. Our first course of action is reading material and we’ve started with The House Hacking Strategy by Craig Curelop while we are paying off our debt. If there are any seasoned house hackers, agents, brokers, lenders with any advice they can share please feed us! Our goal is to begin inquiring with a lender early 2028.
NAR a couple months ago pulled their ADU data on the premise of it being old. I believe the data was pulled because it did not depict a view favorable to NAR. The data showed in a vast majority of US markets an ADU addition added less value than the cost of the ADU addition. In many markets, including my San Diego market that NAR data showed ADUs added less than $20k of value, significant less. Make sure you know the value that will be added by the ADU and understand its ramifications with regard to rent control. In virtually every market, you are much better off acquiring a property with an ADU than adding an ADU to a SFH.
Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:
1) The value added by the ADU addition is often significantly less than the cost of adding the ADU. Search the BP for ADU appraisals to encounter numerous examples. This creates a negative initial position. This negative position can consume years of cash flow to recover. Make sure you know the value the ADU will add to the property before building the ADU.
2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc). Leverage magnifies return.
3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR. However if I do a BRRRR I can achieve infinite return by extracting all of my investment. Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).
4) Adding an ADU is a slow process. It can take a year or more to complete an ADU. During this time you are not generating any return from the money invested in the ADU. This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return.
5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space.
6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties. This may affect value or time required to sell.
7) Adding an ADU does not make the property a duplex. For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy). Duplex have different zoning that may permit additional units. Duplex can always add additional units via the ADU laws.
8) Related to number 1, purchasing a property with an existing ADU is cheaper than buying a property and adding an ADU. Why add an ADU if it can be purchased cheaper?
9) adding multiple ADUs or adding an ADU to a quad looses F/F conventional financing. This reduces exit options and affects the value. The first part of this may have recently changed (someone indicated it had changed but I have not verified it).
10) Small number of small units is the most expensive residential development there is. This implies residential units can be built at lower costs and provide better return than building a single ADU.
11) adding an ADU to SFH can make the SFH fall under rent control. In CA currently only MF properties are rent controlled. If the house is older than 15 years old and an ADU is added, it can become rent controlled. Rent control laws are market specific. Make sure you know the impact that adding an ADU will have on any rent control.
12) investors seldom include the land value in the overall ADU costs. The reality is the land has value.Note JADU additions are far worse than ADU additions as an investment. You likely will be removing the JADU at selling to obtain highest value for the property (ie JADU typically lower the value of the property
Be careful before you proceed with adding an ADU as part of your investment plan.
good luck
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