Best state for house hacking if you could move anywhere?

House Hacking
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Best state for house hacking if you could move anywhere?

Elijah Skinner
Member since 2021 · 11 posts · 10 votes

I'm curious to what everyone thinks.  Is there one area that is typically viewed as the best option for house hacking?  Are there a couple markets?


I know the consensus is "The best market is the one you're already in"  but I'm just curious.

If you could start over anywhere with a decent chunk of money and a solid house hacking strategy, where would you choose?

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Conner Olsen
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
2y
Quote from @Elijah Skinner:

I'm curious to what everyone thinks.  Is there one area that is typically viewed as the best option for house hacking?  Are there a couple markets?


I know the consensus is "The best market is the one you're already in"  but I'm just curious.

If you could start over anywhere with a decent chunk of money and a solid house hacking strategy, where would you choose?


Rule #1 of househacking is to like where you live. You can find cheap properties in every state. Personally I'd think more about quality of life you are looking for and if that market fits into your overall investing goals. For example: If you have an extremely high salary and low expenses you might not need cash flow and would perfer an equity growth market. On the flip side if an extra $500/month would drastically change your financial situation then go towards a more cash flow market.

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

    @Elijah Skinner

    San Antonio and Houston are great spots for for house hacking in real estate, with cheap homes and lots of people looking to rent. Places in the Midwest like Cleveland, Indianapolis, and Kansas City are good for this too, and in the Southeast, cities like Charlotte, Atlanta, and Raleigh-Durham offer cheap buys and lots of renters. When picking a place for this, think about how cheap it is, how many people want to rent, the job scene, and rules that are good for the home owner. If you've got a lot of cash, look for places where it's cheap to buy, there's a high demand for rentals, and the chance for growth.

    Good luck!

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  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    2y
    Quote from @Elijah Skinner:

    I'm curious to what everyone thinks.  Is there one area that is typically viewed as the best option for house hacking?  Are there a couple markets?


    I know the consensus is "The best market is the one you're already in"  but I'm just curious.

    If you could start over anywhere with a decent chunk of money and a solid house hacking strategy, where would you choose?


    Rule #1 of househacking is to like where you live. You can find cheap properties in every state. Personally I'd think more about quality of life you are looking for and if that market fits into your overall investing goals. For example: If you have an extremely high salary and low expenses you might not need cash flow and would perfer an equity growth market. On the flip side if an extra $500/month would drastically change your financial situation then go towards a more cash flow market.

    3Reply
  • Avery Heilbron
    Realtor · Raleigh-Durham, NC · Member since 2018 · 324 posts · 218 votes
    2y

    Somewhere with multifamily stock, job/pop growth and where you want to live

    1Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    2y

    Hi @Elijah Skinner

    Texas

    Dallas Fort Worth 

    solid tenant pool & renters where we have tons of job growth opportunities

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

    @Elijah Skinner

    *Cue every agent talking about their area* haha

    In all seriousness, I've house hacked twice in Reno NV long before I became an agent here. 

    While I'm obviously bias to the area, I wouldn't change a thing. So much happening in Reno and it's flying under the radar. 

    Find out where you like to be and spend most of your time and make a house hack work in that area. 

    415-233-1796
    1Reply
  • Elijah Skinner
    OP
    Member since 2021 · 11 posts · 10 votes
    2y
    Quote from @Jake Andronico:

    @Elijah Skinner

    *Cue every agent talking about their area* haha

    In all seriousness, I've house hacked twice in Reno NV long before I became an agent here. 

    While I'm obviously bias to the area, I wouldn't change a thing. So much happening in Reno and it's flying under the radar. 

    Find out where you like to be and spend most of your time and make a house hack work in that area. 


     I appreciate the information!  I am currently in Los Angeles on a high salary.  But its kind of boring here for real estate atleast in my opinion and a new adventure sounds nice haha.

    I was currently looking at Columbus Ohio, Lynchburg VA, and Staunton VA.

    Never even thought about Reno, ill have to give it a look.

    2Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    2y

    I think a reasonably priced market that's growing and has a diversified economy with relatively low crime and good schools. Perhaps markets like Denver, Austin or Phoenix but I think there's lots and lots of places that are great for house hacking. 

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Elijah Skinner

    LA is "boring for real estate"...?  What in the world does that mean?  =)

    And let me ask you this - how many properties have you looked at?  How many offers have you made?

    To find something good you'll have to put in more work than others.  Maybe look aggressively for 6 months.  And then go from there.

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Elijah Skinner:

    I'm curious to what everyone thinks.  Is there one area that is typically viewed as the best option for house hacking?  Are there a couple markets?


    I know the consensus is "The best market is the one you're already in"  but I'm just curious.

    If you could start over anywhere with a decent chunk of money and a solid house hacking strategy, where would you choose?

    The best for Househacking is where real estate is expensive with lot of high job growth so you live in high growth mode for free.
    1Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    2y

    @Elijah Skinner house hack where you want to live, can afford to live, and can reasonably find people you would be willing to live with (hence the house hack part). I would consider high job growth and population growth markets to give you the best opportunity for appreciation and demand over the coming decade. The most important step is to set a deadline and take action!

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2y
    Quote from @Elijah Skinner:
    Quote from @Jake Andronico:

    @Elijah Skinner

    *Cue every agent talking about their area* haha

    In all seriousness, I've house hacked twice in Reno NV long before I became an agent here. 

    While I'm obviously bias to the area, I wouldn't change a thing. So much happening in Reno and it's flying under the radar. 

    Find out where you like to be and spend most of your time and make a house hack work in that area. 


     I appreciate the information!  I am currently in Los Angeles on a high salary.  But its kind of boring here for real estate atleast in my opinion and a new adventure sounds nice haha.

    I was currently looking at Columbus Ohio, Lynchburg VA, and Staunton VA.

    Never even thought about Reno, ill have to give it a look.


     Lynchburg and Staunton are in the middle of nowhere, what makes you put them on your list?

    Assuming you didn't need to have a geographic job, your goal financially would be living as cheap as possible while renting as high as possible while realizing the highest appreciation as possible. That generally means going where housing is still relatively cheap, holding costs such as taxes and insurance are relatively cheap, and there is a lot of upward pressure on the housing market. 

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  • Elijah Skinner
    OP
    Member since 2021 · 11 posts · 10 votes
    2y
    Quote from @Nicholas L.:

    @Elijah Skinner

    LA is "boring for real estate"...?  What in the world does that mean?  =)

    And let me ask you this - how many properties have you looked at?  How many offers have you made?

    To find something good you'll have to put in more work than others.  Maybe look aggressively for 6 months.  And then go from there.


     Well, the way I sort of analyze these things is my job is entirely doable remote.  I am in the dead center of Los Angeles.  The majority of the homes are 800k+ for a 2 bed 1 bath.  I make decent money but not enough to make 800k completely non consequential.  I am looking at some of these homes in areas like Virginia, Ohio.  And seeing 3 unit Multi families for 300k.  

    In my situation I also have built in tenants that would move with me and would become rent payers off the bat as well.

    So with these high price los angeles homes.  The risk seems immense with very little payoff.  Lets say i put in a 3.5% offer a t 1.3 million dollar triplex.  I am going to be paying 10k a month in mortgage , perhaps renting out the other units for 2.5k a pop.  But then still paying 5k and also covering repairs.

    It just seems incredibly risky to me.  Especially as a new investor.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Elijah Skinner

    totally fair and thoughtful response.  a lot of those 300K 3 units are going to need significant rehabs.  that's the issue with older properties in the midwest.

    and the weather is not as good =) but you know that.  so... pros and cons to both locations.  could you look in slightly less expensive areas in LA county?  i'd never tell a random person on the Internet "yes you should definitely move to Ohio!"

    1Reply
  • Elijah Skinner
    OP
    Member since 2021 · 11 posts · 10 votes
    2y
    Quote from @Nicholas L.:

    @Elijah Skinner

    totally fair and thoughtful response.  a lot of those 300K 3 units are going to need significant rehabs.  that's the issue with older properties in the midwest.

    and the weather is not as good =) but you know that.  so... pros and cons to both locations.  could you look in slightly less expensive areas in LA county?  i'd never tell a random person on the Internet "yes you should definitely move to Ohio!"

    Haha!  Yeah, theres not a lot to do out there I reckon, but truth be told I'm a pretty introverted guy.  Stay inside most of the time and read / study.  Like to hangout with my wife and 1 close bud mostly, lol.

    Hey if you got some good recommendations for LA county I'm all ears!

    Appreciate the replies 
    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Elijah Skinner:
    Quote from @Jake Andronico:

    @Elijah Skinner

    *Cue every agent talking about their area* haha

    In all seriousness, I've house hacked twice in Reno NV long before I became an agent here. 

    While I'm obviously bias to the area, I wouldn't change a thing. So much happening in Reno and it's flying under the radar. 

    Find out where you like to be and spend most of your time and make a house hack work in that area. 


     I appreciate the information!  I am currently in Los Angeles on a high salary.  But its kind of boring here for real estate atleast in my opinion and a new adventure sounds nice haha.

    I was currently looking at Columbus Ohio, Lynchburg VA, and Staunton VA.

    Never even thought about Reno, ill have to give it a look.


     columbus or miami both fun cities 

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  • Tim Ryan
    Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 654 posts · 622 votes
    2y

    Boy this is tough to answer. Since you are saying house hack, you'll be living there. I don't ever think about this as my motto is "Live where ever you want, invest only where it makes sense".  Either way, the key is to go to a "Future Growth Market".  Houston had its run. Why would you go there, it's too late. Same for Nashville.  I know most people wait to hear everyone else talking about an area before they will believe in it. I don't invest that way. Go where people are barely talking about but you can see the area growing. So here's my recommendation - Milwaukee area!

    3Reply
  • Elijah Skinner
    OP
    Member since 2021 · 11 posts · 10 votes
    2y
    Quote from @Tim Ryan:

    Boy this is tough to answer. Since you are saying house hack, you'll be living there. I don't ever think about this as my motto is "Live where ever you want, invest only where it makes sense".  Either way, the key is to go to a "Future Growth Market".  Houston had its run. Why would you go there, it's too late. Same for Nashville.  I know most people wait to hear everyone else talking about an area before they will believe in it. I don't invest that way. Go where people are barely talking about but you can see the area growing. So here's my recommendation - Milwaukee area!


     Exactly!  I was looking at Nashville and some suburbs outside of Nashville about 2 years ago,  but it seems like the time for those spots passed by.

    Ill check out Milwaukee, never heard that suggested before. appreciate the info 

    0Reply
  • Nick HarringtonBusiness Member
    Real Estate Agent · Milwaukee, WI · Member since 2019 · 31 posts · 28 votes
    2y

    Hey Elijah - I have alerts set up whenever someone mentions the word Milwaukee in a post, so here I am! I live in Milwaukee, have househacked in two different properties, am a realtor, and almost all my business is working with investors (house-hackers, out of state buyers, flippers, etc). 

    In general, you can househack anywhere, and the most important part of househacking is living in a location you want to live. It doesn't have to be a duplex / multi-family, it can be a single family home that you rent rooms out to friends / strangers. 

    I am (to no-ones surprise) very biased on the Milwaukee area for a lot of reasons. First off, I live here and love it here- but for more of the numbers / data side of things, the average duplex price is $200k (in more desirable areas you are looking at $300k - $450k), super consistent and steady appreciation (right around 8% YoY for the last 4 years), 2nd strongest renters market in the US this year after Miami, 3rd most duplexes of any city after New York & Chicago... the list goes on 

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  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    @Elijah Skinner

    Everyone's market is the best market....especially if you're a realtor in that market....

    I'll be honest I lived in a few spots and where I live now Franklin TN is truly the best place on earth if you ask me. 

    Low property taxes, no state taxes, excellent maintenance done by the city, good schools, etc...

    You mentioned looking in the suburbs of Nashville but that time has passed by? Of course it has, just like 2009 passed me by. You're never going to be able to invest or buy in the past, but 10 years from now you're going to be saying the exact same thing "I wish I bought back in 2024"

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Elijah Skinner:
    Quote from @Tim Ryan:

    Boy this is tough to answer. Since you are saying house hack, you'll be living there. I don't ever think about this as my motto is "Live where ever you want, invest only where it makes sense".  Either way, the key is to go to a "Future Growth Market".  Houston had its run. Why would you go there, it's too late. Same for Nashville.  I know most people wait to hear everyone else talking about an area before they will believe in it. I don't invest that way. Go where people are barely talking about but you can see the area growing. So here's my recommendation - Milwaukee area!


     Exactly!  I was looking at Nashville and some suburbs outside of Nashville about 2 years ago,  but it seems like the time for those spots passed by.

    Ill check out Milwaukee, never heard that suggested before. appreciate the info 


     If you want to know the next market seriously go deep into Redfin's data.

    0Reply
  • Wayne Woodson
    Investor · Nashville, TN · Member since 2009 · 483 posts · 228 votes
    2y

    I wouldn't say there is a best state overall but there are a few cities that stand out. Nashville sucks for house hacking as most of these properties can barley cashflow anything above a positive cap rate. Memphis and Chattanooga on the other hand seem to have better cashflow in my professional opinion.

    1Reply
  • Account Closed
    Real Estate Agent · Chattanooga, TN · Member since 2021 · 29 posts · 22 votes
    2y

    @Elijah Skinner

    I agree with what others have said.... hack where you live.

    BUT if you want to spread your wings a bit then I'd recommend at least take a quick peek at the Chattanooga TN market. We were recently voted "The Best Place to Live in Tennessee" by US News and World Report. Google "chattanooga tn city data rocket homes" for some stats on our housing market. Good cost of living, outdoor living, blah blah, you get the idea.

    Best of luck sir!

    Spencer

    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    Honestly, probably California. Rarely will I say that, but for house hacking and flips this is probably the best. 

    1Reply
  • Kevin Marshburn
    Real Estate Agent · Miami, FL · Member since 2019 · 25 posts · 19 votes
    2y

    South Florida is an amazing place to live, although it's become more expensive, it has a great quality of life. I'm also very bullish on FL and South Florida real estate long term. We have great weather so it's an easier adjustment coming from LA. It is tricky to find cash flow, but house hack helps solve that, and numbers won't be as good as your $300k VA deal, but will look better than you're LA triplex example...

    0Reply
  • Becca F.
    Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Sacramento area in this market. The prices are reasonable compared to S.F. Bay Area. $500,000 to $600,000 range, would consider a duplex. Bay Area and LA area is rough with higher price points. 

    Nevada, either Reno or Las Vegas area or Arizona. I favor the western states since it's a short flight away.  I was impressed by NV and AZ with low property tax rates. 

    Would consider Nashville area. I visited over 10 years ago. Franklin and Brentwood area was really nice and the property values have gone up a lot. I think I missed that market but prices are still reasonable compared to California. 

    0Reply
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