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

[Matthew Newsom]

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?  

[Russell Brazil]

Cash flow? Probably not. 

Reduce your housing expenses? Absolutely.

[Matthew Newsom]

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

[Theresa Harris]

Quote from @Matthew Newsom:

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

 Yes if you mean support yourself after you finish your regular job effectively using rent as a pension.  As with anything it depends on a number of things-is the house paid off or it is mortgages to the max?  If the latter, then no it is unlikely you will be able to live off the rent because the expenses of carrying the house are so high.  If it is mortgage to the max, chances are you've pulled that money out to make it work elsewhere.  Also what type of lifestyle are you trying to maintain-a simple one or one where you go on exotic vacations every month?

[Jana Crum]

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.

[Henry Clark]

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.

[Madri Koppe]

Yes, as long as you go in with the right expectations. I’d look at it as a long term investment and a great way to offset your living expenses so you can save money and look to purchase other investments. 

[Tatum Littleton]

Quote from @Jana Crum:

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.

 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!

[Wale Lawal]

@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!

[Michael Smythe]

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

[Haiden Welch]

Quote from @Matthew Newsom:

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

 100% possible. The real estate market is cyclical and sometimes its time to hunker down and somtimes it time to buy, but there are always opportunities.

[John Steffen]

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!

[Haiden Welch]

Quote from @John Steffen:

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!

 Very well said!

[Alejandro B Yoon]

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]

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. 

[Jake Andronico]

@Matthew Newsom

Cash flow on a house hack? Shouldn't be the goal. You will be disappointed if it is. 

Compare it to your current living expenses. 

Also, how're you improving the property while you're there to help cash flow when you move out? 

I've house hacked twice in Reno, NV starting at 22 and it's completely changed my life. 

The more uncomfortable you're willing to live, the better the numbers will be.