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Updated over 2 years ago on . Most recent reply

What can I afford?
When looking to house-hack a multi-family property, what should I consider in terms of what I can afford? Should I factor in the rental income, or should I assume I’d pay the full cost of the property?
Most Popular Reply
Hi @Jordan Alequin!
Great question and here are my thoughts!
In terms of what you can "afford" your lender is going to be able give you that max purchase price number based on your debt to income and other factors. Just because you get a large pre-approval doesn't always mean that's what you can actually afford or need max yourself out.
However, with the house hack, I believe you should be focused on three thing. Will you be able to make your new purchase work for your personal living situation for at least the next year, will your out of pocket each month be similar or lower than renting a comparable unit in your area, and once you move out how close to breakeven will your investment be?
Not every deal will work which you will learn by running the numbers on dozens of deals. You'll find out what the average, above average, and below average deals look like over time.
Good luck on your search and here for any questions along the way!
- Ty Ash