Is house hacking still going to work for people in Gen Z ?

Question

I'm shooting to get my first house in a few years and was interested to see if it's still easy to cash flow off of a house hack in 2024?

Jana Crum · Answer

I advise my clients to think of house hacking as reducing the amount of money they personally pay for their housing every month. This helps set the right expectations as we are not in an easy cash flow market. Also look into doing a live-in-flip, it's a great house hack alternative in this market.

Matthew Newsom · Answer

IS it still possible to "retire" off of residential REI?

Alejandro B Yoon · Answer

I've househacked twice at 22 years old.

First property cashflows, I live nearly for free in a more expensive city.

Definitely still works.

Mose Gebremeskel · Answer

Just recently house hacked so yes it works. I wouldn't expect to cash flow off the first property but expect a significant decrease in expenses.

Wale Lawal · Answer

@Matthew Newsom

House hacking is a viable strategy for generating cash flow in 2024, but success depends on market conditions, financing terms, property type, and rental demand. High interest rates and rising housing prices make it challenging to find a property that cash flows well. Location and tenant preferences also play a role. House hacking can cover mortgage payments, live cheaply, and build equity over time.

Good luck!

Russell Brazil · Answer

Cash flow? Probably not.

Reduce your housing expenses? Absolutely.

Michael Smythe · Answer

It has gotten harder as housing values have fully recovered from the 2008-2010 real estate crash.

John Steffen · Answer

Focus on the highest and best use of a househack. Cash flow very rarely exists in this market, so don't try to fit a square peg in a round hole. Build the equity through appreciation and principal paydown, save on living expenses, hedge against inflation, then leverage that asset to buy your next home or rental property. Rince and Repeat. I wouldn't depend on cash flow these days, but if you are cash flow positive, awesome! Stack your cash reserves!

Tatum Littleton · Answer

I 100% agree with this! As well as what Madri Koppe mentioned. Just about everyone only talks about and highlights cash flow and if it doesn't cash flow then it's not good... I would not necessarily agree with that because of what is said above. With house hacking you still may pay for some of the payment but not all which is still great and you can save that money. House hacking is a great way to learn to be a homeowner and a property manager all in one. Of course cash flow is great but not paying for all of the housing expense every month is also great. A good way to look at it, Jana!

Henry Clark · Answer

Yes.

Use your strengths. Looking at your past posts.

1. Your young. Start small. Start with mobile home. Do a 2/2 or 3/2. Rent the larger room out. The money in mobile homes is the lot, not the trailer. Own the lot. Look for a $30,000 to $70,000 deal.

2. Learn on this one. If it works do another one.

3. Stick with one lender in the area.

4. You are in a great location. You can build your REI business within a 30!mile radius. Build your Team in that area. You will be ahead of most investors.

5. As you build up equity or cash you can start to grow into mobile home parks, SFH, fix flip, MFH, land development,’etc.

Keep your Trade job. This will supply a solid income stream. Don’t jump job to job. Your wealth and fun will be met with your REI.

You will want to take a big swing at REI. Don’t. It’s the proverbial snowball. Start small and then it will pick up speed later.

Joins REI groups and keep learning.

Is house hacking still going to work for people in Gen Z ?

Is house hacking still going to work for people in Gen Z ?

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