New to Real Estate · Long Island, NY · Member since 2023 · 5 posts · 5 votes
Hello, Bigger Pockets community!
I'm seeking some insights on house-hacking in South Florida. I'm looking to purchase either a SFR or a small multifamily property with an FHA loan and a budget of $250k to $300k in West Palm Beach. So far, every property I've evaluated seems to result in negative cash flow. I understand that it's challenging to find cash-flowing properties in this rapidly appreciating market, but the numbers suggest that my rental income would only cover about 50% of my PITI.
Has anyone here had experience with house hacking in South Florida? What are the typical financial metrics in this area? Are there any innovative strategies to enhance cash flow that you could share?
Myhkailo, @Andrew Postell is correct. Instead of trying to cashflow while you are living there, I would run the numbers to ensure that you will cash flow once you move out. Saving money on living expenses is the goal for this. Then, you move out and are left with a cash flowing property. This is what I am searching for right now.
@Mykhailo Strelchenko oh, this is a somewhat common question so let me help here a little. As long as you occupy the property - you won't ever cash flow. House hacking means you are occupying the property...which means, you are taking up a part of the house which would produce income! If you purchase a duplex...you will live in one of the units. It would be IMPOSSIBLEI to cash flow if you are taking up half of the potential income.
What House Hacking allows us to do is afford a higher value home that maybe we couldn't afford. Or it helps OFFSET the high cost of home ownership. I started out house hacking. I firmly believe it in....the expectation is that you won't cashflow on any property that you house hack.
I am a realtor in the Palm Beach area and I can comment on this because I just found a property for a client in palm beach gardens by the VA hospital. They are going to be house hacking in order to use an FHA Loan for the low down payment. My best advice would be to try to look for a SFH that can be potentially turned into a duplex or that an ADU { an efficiency} can be added in order to rent it out. Finding a well priced duplex or triplex in the Palm Beach area is extremely hard at the moment. If you want more details on the deal message me privately I can talk to you more about it. Good luck on your endeavors.
Myhkailo, @Andrew Postell is correct. Instead of trying to cashflow while you are living there, I would run the numbers to ensure that you will cash flow once you move out. Saving money on living expenses is the goal for this. Then, you move out and are left with a cash flowing property. This is what I am searching for right now.