Best approach to house hacking

[Whitney Patterson]

Hi there! I am new to real estate investing, and I'm beginning classes toward agent licensure in June. Being that I work in education, and I am starting from nothing (with some shared debt), I am looking at a house hack. I currently live in/own a property that would fairly easily split into two units (upstairs and downstairs), and is located in an historic area close to hospitals, restaurants and amenities. Renting the upstairs as a MTR or STR would cover the mortgage of the property. Renting both units could probably cash flow around $1000 per month. Other STRs in the area of smaller size have reported earning potential up to $3k per month. My question is this: Should we move out to maximize cash flow on this property? At what point will I know when we are ready to purchase the next house hack? These answers may seem obvious to you all, but remember-- I've never done this before, so it feels like a huge unknown risk.

[Anthony Swain]

Hey @Whitney Patterson,

Congrats on taking the steps to become an agent!

Have you considered starting with the house hack living in one unit while you rent out the other to start? You could learn the necessary skills to furnish, market, & manage the other unit. These could be valuable for future investments while you have a good safety net of having a steady place to live. 

House hacking it for a year or so, could allow you to build up extra funds for a future down payment, furnishings, and other costs. 

People much much wiser than I, always remind me, true wealth is built in the long-term. This applies to real estate too. It is about the long-game. 

Ultimately, these decisions are based on your own lifestyle & goals.

Good luck Whitney!