House Hacking SFH

[Jack Hamm]

Hello BP, when looking at properties I spend all of my time looking for multifamily homes, this is because even though I know the SFH is the most profitable I don't know what to do with the home after I move out. It seems really difficult to manage a rent by the room property when you are no longer a resident of the property.

I guess my questions are what happens to a SFH househack after you move out? Do you need to make sure it can work as a LTR for a family? How can the property remain profitable without me living there?

[Michael Dumler]

@Jack Hamm, it depends, how long do you intend to live there? Keep in mind, on an average annual basis, rent can rise anywhere from 2%-4% per year. As you noted, ideally, the goal for many house hackers is to convert the home into either an LTR or STR after moving out. Many pursue this strategy so that they can add a property to their investment portfolio every 2-3 years, depending on their savings rate and risk tolerance. To answer your question, yes! - analyze the property as a traditional rental but make sure you're using accurate rental rates.