Is it a House Hack or House Purchase?

[RC Lupton]

A little background, we are new to Bigger Pockets, Love the positive interaction here. Yay!! my Wife and I purchased a home 4 years ago 15 yr. mortgage. (Denver Market) we are making remodeling improvements that will add $30k in equity a 4th Bedroom and 3rd Full Bath. Are we house hacking? Because we want to sell for profit 200K and buy a live in home in a smaller market with half the cash profit and possibly buy a small rental property with the remainder. We don't believe our current house now would rent for the PITI due. All thoughts would be appreciated.

[Tim Herman]

@RC Lupton to notify people you have to tag them. Use the @ sign and start typing their name. Outside the box double click on the name and it will populate the box in blue and they will be notified. You need to know how money works. I am going to copy and paste another post I did.I will give an example. Have $100000 to invest going to use the 1% rule(rent must be 1% of purchase price) and the 50% rule ( half income goes to expenses). Buy 1 house cash or 5 houses 20% down, yes i'm ignoring closing cost. Rent $1000 per month/$500 net for 1 house or $6000 per year. $500 less $430 mortgage = $70 per month net * 5=$350 * 12=$4200 per year. Use 3% rent growth compounded annually for 10 years rents grow to $1344. One house will clear $9128. 5 houses will clear $24840. Yes i know i am ignoring increasing cost. Same 3% inflation for selling = $134400 for 1 house or $672000 for 5 houses. Man those dam mortgages They are paid down to $65073 * 5 =$325365. Equity in 5 houses= $346635. Leverage is power in real estate.