Strong Househacking Markets Near Me

San Diego, California
House Hacking
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Strong Househacking Markets Near Me

Cederic Frank
Member since 2024 · 4 posts · 5 votes

Hi, I currently live in San Diego, CA with a house budget of $650,000. I'm planning on house hacking (honestly comfortable renting out bedrooms in say a 4-5 bedroom house) and having that cover all my expenses. As I've been looking for a while close to home, I'm considering expanding my search to anywhere around a 5-6 hour drive away (my parents and younger siblings still live in SD, and my work which I can do remote/flex is based in San Diego).
I'm considering new markets and interested in feedback on what areas anyone suggest I start to narrow in on. 

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Jake AndronicoBusiness Member
Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
2y

@Cederic Frank

Congrats! I've house hacked two single family homes in Reno NV, and rented out 4 rooms in each. 

I went to UCSB and visit SoCal pretty often. I'm of course bias because I invest here and I'm an agent here, but there are plenty of options for great properties in the $650K range in Reno. It's a bit more than a 5-6 hour drive, but still wanted to throw it out there. 

Best of luck to you no matter what you decide!

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  • Nate MeekerBusiness Member
    Real Estate CPA | California · Member since 2020 · 544 posts · 251 votes
    2y

    @Cederic Frank Congrats! House hacking has saved me and clients thousands. I am currently house hacking in Temecula and just finished a deal in Hemet as well. I have advised many others through the process - there's some tax consequences you should be aware of. The rental market is strong here and you shouldn't have a problem minimizing your mortgage. Let me know if I can be of help!

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  • Kenneth Donaghy
    Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
    2y

    Hi @Cederic Frank, Welcome to the forums! Is the 650K your preapproval amount? I've helped clients start househacking with similar budgets. I'm bias to the SD market, hugely because of appreciation, and wealth creation through home equity, and I know it better than any other city. Like you. I would also keep in mind, your work will need to approve with the lender you can work remotely from that distance, so if they do choose to have you near the office. 

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  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y

    @Cederic Frank

    Congrats! I've house hacked two single family homes in Reno NV, and rented out 4 rooms in each. 

    I went to UCSB and visit SoCal pretty often. I'm of course bias because I invest here and I'm an agent here, but there are plenty of options for great properties in the $650K range in Reno. It's a bit more than a 5-6 hour drive, but still wanted to throw it out there. 

    Best of luck to you no matter what you decide!

    415-233-1796
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  • Cederic Frank
    OP
    Member since 2024 · 4 posts · 5 votes
    2y
    Quote from @Nate Meeker:

    @Cederic Frank Congrats! House hacking has saved me and clients thousands. I am currently house hacking in Temecula and just finished a deal in Hemet as well. I have advised many others through the process - there's some tax consequences you should be aware of. The rental market is strong here and you shouldn't have a problem minimizing your mortgage. Let me know if I can be of help!


     I've been considering Temecula for house hacking, the location is convenient I just haven't done any research into multifamily or the market for renting a room in a single family.

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    2y

    @Cederic Frank is the prequalification amount for a single family home? Have you tried examining a 2-4 unit home to see what you could get in that price range? Using the rental income should help you buy more...if you have the other things needed for a loan like that. Getting a property with an ADU would also help with qualifying for a higher amount. Maybe you have already talked about these things with your loan office but just in case you haven't...ask about those things too. That might help with your search.

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  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    2y

    @Cederic Frank I started out house hacking locally with single units until moving up to multifamily.  It is worth looking in to to see what you'd qualify for on a multifamily property where you can house hack by renting out one of the units and even renting the other room(s) in the unit you will be occupying.

    Since you are opening on distance within san diego going north county such as escondido and fallbrook then beyond that you'd be going to Riverside county...Temecula, Murrieta, Menifee, etc

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  • Maxwell Ventura
    Real Estate Agent · San Diego, CA · Member since 2016 · 308 posts · 173 votes
    2y

    @Cederic Frank

    It will be tough to find a 4+ bedroom for $650K in SD. Not impossible, but you'll most likely have to go to the outskirts of the county, or be okay w/ a property that's fairly distressed and needs a fair amount of work. 

    Your next best bet is heading north to Riverside county, which isn't necessarily all that much cheaper in some areas. 

    If you're able to make SD work I would. Yes, you'll pay a little more on your monthly mortgage but you'll make that back up and then some in no time w/ the appreciation & economic growth of our city. Plus you get the quality of life.

    2Reply
  • Keith Mintz
    Real Estate Agent · San Diego, CA · Member since 2023 · 189 posts · 88 votes
    2y
    Quote from @Cederic Frank:

    Hi, I currently live in San Diego, CA with a house budget of $650,000. I'm planning on house hacking (honestly comfortable renting out bedrooms in say a 4-5 bedroom house) and having that cover all my expenses. As I've been looking for a while close to home, I'm considering expanding my search to anywhere around a 5-6 hour drive away (my parents and younger siblings still live in SD, and my work which I can do remote/flex is based in San Diego).
    I'm considering new markets and interested in feedback on what areas anyone suggest I start to narrow in on. 


    San Diego is awesome for co-living. Specifically college area, normal heights, Clairemont, Logan heights area...etc. The reason is because you have a younger crowd, more singles and career focused/working people looking for affordable housing and the location is not far from downtown and most working offices. Easy to rent by the bedroom and house hack. Even good for STR if you went that route.

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  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    It is hard to live for free/cash flow on a house hack in California immediately. It typically takes time because you are banking on appreciation. For example when I bought my second house hack here in LA, we were negative cash flow. Now, if we wanted to, we could be living for free/positive cash flow (if we wanted to rent out our other bedrooms).

    I'm more familiar with LA County and Ventura County than I am SD, but if I recall Lemon Grove area had a lot of options. I had clients looking there a while back. There were homes with awkward floorplans and you could easily add an extra 1-2 bedrooms within the existing floor plans.

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  • Benjamin Sulka
    Cleveland, OH · Member since 2022 · 826 posts · 578 votes
    2y

    Unless you find a gem, most properties won't cashflow because of the low down payment (and therefore higher principle) and because of higher interest rates. Especially in a higher priced area. 

    While house hacking, the goal should be to pay less than you would renting and then turn into a full time rental once you move out. Or don't move out and you're still paying less than you would renting and you now own an asset. 

    I'm personally looking to buy in a nicer neighborhood in Northeast Ohio and accepting that the property won't cashflow up front. Unless you're trying to use real estate to replace your income, then buying a nicer property in a nicer area will do much more for long term wealth building. At least in theory. 

    You got this! 

    2Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Cederic Frank

    Hi there! It might be a wise strategic decision to broaden your search to other areas, but there are a number of things to take into account. You may use the following factors to help you focus on certain target markets:

    Economic Stability: Seek out regions where the economy is expanding or steady. Diversity in the workplace and employment possibilities are important aspects.

    Population Growth: Increasing numbers in a market are frequently a sign of a positive real estate climate.

    Real Estate Market Trends: Examine local rental demand, property valuations, and market trends. Examine if the current state of the market is conducive to investing.

    Local Amenities and Infrastructure: Take into account the accessibility of schools, public transit, and other infrastructure as well as amenities. These elements may affect how desirable the location is.

    Local Laws and Regulations: Learn about the laws and rules pertaining to tenants in your area. There may be rules that favor landlords more in some places than others.

    Property Taxes: Examine the rates for property taxes in prospective markets as they will have a big effect on your total costs.

    Future Development Plans: Look into any planned construction or infrastructure initiatives that might raise the value of real estate.

    Vacancy Rates: A robust rental market is typically indicated by low vacancy rates. Examine the current rates of vacancies in the neighborhoods you are thinking about.

    You can explore other markets because you have the opportunity to work remotely. Promising areas to start may include cities or regions that combine population growth, economic stability, and strong real estate trends.

    Remember to conduct thorough due diligence on any market you're considering, and consider making a few visits to potential areas to gain a firsthand understanding of the local dynamics.

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