Best market to house hack in?

House Hacking
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Best market to house hack in?

Yoffi Storch
Member since 2022 · 2 posts · 13 votes

Hello everyone,

I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

 I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

 I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

My criteria is triplex/quadplex and up to $700k 

What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

Thank you in advance for your help!

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Dan SheeksPro Member
Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
3y

Hey @Yoffi Storch. I host a bi-weekly Zoom meeting for new/beginning investors who are between 15 and 25. Almost all of the attendees are house hacking or will be in the near future. It's a networking group, and we often have expert guests join our meetings. If you're interested, lmk.

Dan

[email protected]Podcast Guest on Show #179
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  • Vadim F.
    Investor · Member since 2020 · 337 posts · 213 votes
    3y
    Quote from @Yoffi Storch:

    Hello everyone,

    I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

     I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

     I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

    My criteria is triplex/quadplex and up to $700k 

    What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

    Thank you in advance for your help!


     The best market is always the market you currently live in. 

    What are you looking to achieve, is it cash flow is it appreciation? Ohio for example has some of the best landlord friendly laws out there. You have markets like Cleveland and Columbus (2 that I am familiar with). Columbus is an appreciating city YoY (8% if not mistaken last I checked), but cash flow is on the lower side. There's Cleveland which is a cash flow king but your appreciation is slim and its a long term game. 

    1Reply
  • Account Closed
    Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y

    Congratulations on being in such a good position at 18! 

    Here's bigger pockets list of best CF cities: https://www.biggerpockets.com/...

    Heavy on the midwest as expected, due to the great median home price:rent ratio. This is a good factor to assess a potential house hack. This is just for cashflow, a good area to get appreciation and CF is Columbus. Cleveland has better CFs but stagnant appreciation and a population that has declined over the years.

    0Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
    3y
    Quote from @Yoffi Storch:

    Hello everyone,

    I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

     I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

     I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

    My criteria is triplex/quadplex and up to $700k 

    What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

    Thank you in advance for your help!


     Here in Ohio we have multiple markets that will help you achieve your goals. For instance, in Columbus you can find a Tri/Quad in nice areas that will (theoretically) experience appreciation due to all the investment dollars being poured into the region. You also have more affordable markets like Toledo, Cleveland, and Dayton where that price point will put you in A areas. This, along with Ohio being considered a landlord friendly state is a great place to househack!  

    2Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Yoffi Storch:

    Hello everyone,

    I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

     I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

     I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

    My criteria is triplex/quadplex and up to $700k 

    What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

    Thank you in advance for your help!

    Hey Yoffi, I was in a very similar boat as you - I'm from Portland Oregon and wanted to do full-time real estate investing and wanted to start off with a house hack.... ultimately decided on Columbus Ohio for many reasons. First, there's so many catalysts for why people should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years as a real estate market that will absolutely blow up. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. As a local investor and agent here, let me know if you have any questions or want to connect

    [email protected]614-300-7535
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    0Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y

    Another vote for Columbus, we're seeing great appreciation, and growing rapidly. Ohio is also very landlord friendly!

    3Reply
  • Yoffi Storch
    OP
    Member since 2022 · 2 posts · 13 votes
    3y
    Quote from @Account Closed:

    Congratulations on being in such a good position at 18! 

    Here's bigger pockets list of best CF cities: https://www.biggerpockets.com/...

    Heavy on the midwest as expected, due to the great median home price:rent ratio. This is a good factor to assess a potential house hack. This is just for cashflow, a good area to get appreciation and CF is Columbus. Cleveland has better CFs but stagnant appreciation and a population that has declined over the years.

    Thank you! I definitely expected the Midwest to be recommended. Will look into different sub markets of Cleveland as well 
    2Reply
  • Miller McSwainPro Member
    Investor · Colorado Springs, CO · Member since 2018 · 261 posts · 233 votes
    3y

    I'd offer a slightly different perspective. My wife and I are in our early 20's and recently moved across the country and started our HH journey.

    Since we were young, like you, we decided to look all across the US and find where we WANTED TO LIVE. House-hacking is a strategy that can work anywhere (although it is better in some areas), so I'd encourage you to find where you would enjoy living first. In our case, we moved from Tennessee to Colorado because of the lifestyle that Colorado offers (skiing, hiking, beauty, beer, etc).

    Once you select a state, then you can start looking for a city that will best support your house-hack. This depends on a couple of things:
    1. Your budget. In our case, Denver and many other markets in Colorado were simply too expensive for us to qualify for
    2. Your strategy. As a house-hacker, you have some options for how to utilize your house: Medium-term-rental, short-term-rental, or rent-by-room rental. Each will lend better to certain cities. For example, short-term works very well in vacation markets and can work in metro markets; medium-term works best in metro markets with hospitals; rent-by-room works best in markets with lots of young professionals or military.

    In our case, we wanted to use the rent-by-room strategy, so we selected Colorado Springs because of the young professional/military presence and because we could qualify for the houses.

    Then you will want to start analyzing properties in that market to ensure that you can hit the metrics you want, get connected with an agent (investor friendly) to start discussions about the market, and get connected with a lender to verify what you can be pre-approved for!

    3Reply
  • Harrison Chow
    Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
    3y
    Quote from @Yoffi Storch:

    Hello everyone,

    I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

     I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

     I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

    My criteria is triplex/quadplex and up to $700k 

    What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

    Thank you in advance for your help!


    Hi Yoffi! Welcome to BP! When considering OOS investing, I suggest seeking markets that experience significant population growth and offer abundant job opportunities. One state you might want to consider is Ohio, which boasts thriving cities like Columbus, Cincinnati, and Cleveland. I personally focus my investments in Columbus, which has seen a significant increase in property values and is expected to continue this trend in the future. This is due in large part to major corporations like Intel, Honda, Nationwide Children's Hospital, and Wexner Medical Center investing heavily in the region and creating numerous job opportunities.

    Additionally, working with an experienced agent who knows the local market can make a big difference. Most of my investors also found it helpful to hire a property manager to help with the day-to-day management of the property.

    If you're interested in learning more about the Columbus market and how I can assist you with your investment goals, please don't hesitate to let me know!




    2Reply
  • Nazanin Boojar
    Member since 2022 · 50 posts · 24 votes
    3y
    Quote from @Yoffi Storch:

    Hello everyone,

    I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

     I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

     I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

    My criteria is triplex/quadplex and up to $700k 

    What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

    Thank you in advance for your help!


     Some cities in Ohio are doing really well but you need to find the exact property with the highest potential based on your own criteria. You can't just blindly invest in any property in those cities.

    Cincinnati has an average of 9.16% annual cap rate and 7.8% for Columbus but you can find way better deals.

    I've analyzed all available SFH cases in these two cities and I can share them with you for free.

    0Reply
  • Dan SheeksPro Member
    Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
    3y

    Hey @Yoffi Storch. I host a bi-weekly Zoom meeting for new/beginning investors who are between 15 and 25. Almost all of the attendees are house hacking or will be in the near future. It's a networking group, and we often have expert guests join our meetings. If you're interested, lmk.

    Dan

    [email protected]Podcast Guest on Show #179
    5Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    Typically house hacking where you currently live is your best option. You know the market and you may even have the network for it.

    I like to house hack in expensive markets because you can factor in the higher loan buy downs and typically have higher appreciation. I house hacked two properties here in Los Angeles and have been able to leverage HELOC to snowball. Remember you don't have to keep the property forever.

    Generally speaking, in most markets you will be fine as long as you know deals aren't found, they are made. You will find many Realtors coming on here promoting their markets. Do your own research and look at howmoneywalks.org to see where people are traveling to and from.

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Yoffi Storch
    The Columbus OH market is landlord-friendly and has many job opportunities and population growth. 

    [email protected]614-412-4565
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  • Hunter Reed
    New to Real Estate · Texas Christian University · Member since 2022 · 118 posts · 56 votes
    3y

    Yoffi, congrats on a investment decision that will change your life. I am a young investor and have talked with several lenders. If you choose to house hack multi-family has to meet FHA requirements. Your 700k budget will not work with FHA. If you have enough money for a down payment on a conventional loan then go for it. Talk to as many lenders as you can to inform you on loan education. Good luck on your journey!

    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y

    Hey Yoffi, welcome to BP. You are in a very nice position in your age. This will generally depend on what you're after. Looking for cashflow? Look into Cleveland, its got good cashflow potential with appreciation happening as well. Looking for appreciation? Come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!

    1Reply
  • Sarita ScherpereelBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
    3y

    Hi Yoffi! I'm bias to Chicago. While we do have higher taxes and our laws favor tenants, house hacking is great here. There are many neighborhoods that have offer are variety of returns. The strategies also vary from using a unit as an airbnb/short term rentals, section 8 tenants or standard leases. Investors like the multiple ways you can earn income on these properties have they move out. Chicago is also a really fun city and public transportation in these different neighborhoods helps accessibility. 

    [email protected]773-456-4644
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  • Brandon Caynor
    Realtor · Cleveland & Akron, OH · Member since 2016 · 13 posts · 6 votes
    3y

    Congrats on getting started. That's awesome! I grew up around Cleveland so staying local made sense to me. I got started with a house hack within the Cleveland suburbs and it worked out well for me. Slightly biased, but Cleveland does offer a lot with three professional sports teams, the second largest theater district (second to Broadway), and a ton of other local attractions and great healthcare systems that draw people to the city. The downside is you're going to have to deal with subpar weather including cold and snowy winters. 


    Ultimately, I'd look at more than just the cash flow or appreciation when moving to a market. Don't discount going somewhere you'd genuinely enjoy living at the cost of some cash flow. Real estate is a long game so go somewhere where you'll be happy. 

    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    @Yoffi Storch

    Hell yeah Yoffi! Super excited to see other young real estate investors and professionals as myself. Are you going to be a real estate agent?I am 19 years old, started at 17. 

    I would recommend checking out Cincinnati if you can! Cash flow AND appreciation opportunities. You won't be disappointed from what you see! Let me know

    [email protected]859-443-4952
    Sam McCormack Realtor
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  • Eudith VacioPro Member
    Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
    3y

    I wish I was your age when I first got started in RE investing!

    I love Chicago or Northwest Indiana :) they are great markets to invest in that will bring you cashflow + appreciation! However, its also not a bad idea to start off investing near where you live now, best of luck - let us know what you decide on

    0Reply
  • Ryan RomingerBusiness Member
    Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
    3y

    Hello Yoffi,

    Congrats on your current position, I personally believe Indianapolis is a great market. Indianapolis has had a steady increase in rental rates and appreciation over the years. If you would like more information or have any specific questions feel free to reach out. 

    [email protected]317-935-0075
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  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    @Yoffi Storch if the plan is to house hack then here are the priorities in my mind when picking a location:

    1.Can you afford to live there?

    2. Do you want to live there?

    3. Find a house that will work to rent out bedrooms or create a separate unit.

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  • Lawrence Potts
    Real Estate Agent · Member since 2018 · 459 posts · 414 votes
    3y
    Quote from @Yoffi Storch:

    Hello everyone,

    I've been spending a lot of time on Biggerpockets and listening to as many real estate podcasts as possible everyday. 

     I'm an 18-year-old aspiring real estate investor, I've been working for a little over a year now at a real estate office learning everything I can from the people around me.

     I'm currently looking for my first house hack, and because of my age, I am open to move to whichever state has the best landlord friendly laws and highest cash flow/appreciation.

    My criteria is triplex/quadplex and up to $700k 

    What markets can you guys recommend. Any feedback or advice is greatly appreciated.  

    Thank you in advance for your help!

    One of the best part of house hacking is that you can make it work in almost any market. So why not take advantage of that and move where you want? It completely depends on what goals, risk tolerance, and what you want real estate to do for you.

    If you're looking for a new market, I'd consider the long term: is it an area that is showing growth (job projection growth, new industries, large employers moving in such as Amazon, Target, Tesla, etc.). Run your numbers as if you were renting out every unit. Would you rather cashflow well on paper? Would you rather sacrifice potential cashflow to appreciate over time and use that to buy more real estate?

    I'd get connected to a lender that knows what you're trying to accomplish. Because you're going to be a first time home buyer, you can utilize a lot of amazing low-down payment options. You'll need to use FHA on owner-occupying a multifamily 2-4 units and anything above 3 units will need to pass the self-sufficiency test. But you'll need to go over those details with your lender. Hope that helps! Let me know if you need me to connect you to a lender.
    0Reply
  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    3y

    HI Yoffi, it really depends what's your main objective and what do you value more? Cashflow or appreciation? If you are looking to invest in multifamily , probably ideal investment would be in the midwest. You can try using FHA for your first house hack by putting 3.5% down payment and rates slightly lower than conventional loan with lesser down payment. However, anything above 3-4 units, there is a self sufficient test that fha requires consumers to pass. In order to past the test, your market gross rental rent at 75% would have to be equal/greater to your proposed monthly mortgage payment.

    As for appreciation, you can try looking into the West coast, like Seattle where you can have high appreciation and potentially build ADU/DADU from an existing SFH by forcing value towards your property/land. @Albert Bui @Carlos Valencia

    1Reply
  • Tanner PileBusiness Member
    Real Estate Broker · Colorado Springs, CO · Member since 2019 · 388 posts · 326 votes
    3y

    @Yoffi Storch

    Colorado!!

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  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Yoffi Storch- thanks ...if you havent already done so - get a  full formal pre approval  in place...this process is  free/ easy and  it will help you get organized / make sure you are approvable for a loan and also help get you  educated on all the  current  numbers  for  whatever scenario you want to use - thanks and good luck

    0Reply
  • Sherief Elbassuoni
    Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
    3y

    You can try FHA loans on a small multi-family, or house hack a split level home if you pick a city with pretty high prices.

    You can also try rent by the room on a pretty big house (5+ rooms or so) if you pick pretty expensive market as well.

    In expensive market, we have good appreciation, but we need to be more creative to get good cash flow. 

    3Reply
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