House hacking to fund multi family

[Dan Keefe]

Hello everyone,

Long time reader, first time poster! Wanted to get the community's thoughts on house hacking using an FHA in more expensive markets (Portland, Denver, etc) to raise funds for small multi family in lower price point cities (Cleveland, Birmingham, etc).

I understand that I wouldn’t likely be able to have all my monthly expenses covered in these more expensive cities but it seems like a good way to get my foot in the door while raising funds to eventually switch to buy and hold multi families.

Was wondering if anyone is doing anything similar? Should I start house hacking in cheaper markets? (I’m a traveling physical therapist so location is flexible) If anyone finds this strategy too beyond a first time investor etc. 

thank you!

[Tanner Pile]

@Dan Keefe I house hack a duplex in Colorado Springs. I do have to pay to live in it but it is lower than what I would pay for rent in the area. I like that I can get equity and appreciation from a multifamily property in a good market and plan to do a refi or HELOC down the road to invest in other properties.

As long as you house hack in a good neighborhood that you see long term growth in, that will be the best thing to get your foot in the door.