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User Stats

25
Posts
19
Votes
Matthew Newsom
  • Specialist
  • New Market, MD
19
Votes |
25
Posts

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

Matthew Newsom
  • Specialist
  • New Market, MD
Posted

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?  

User Stats

17,245
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29,733
Votes
Russell Brazil
Agent
  • Real Estate Agent
  • Washington, D.C.
29,733
Votes |
17,245
Posts
Russell Brazil
Agent
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

Cash flow? Probably not. 

Reduce your housing expenses? Absolutely.

User Stats

25
Posts
19
Votes
Matthew Newsom
  • Specialist
  • New Market, MD
19
Votes |
25
Posts
Matthew Newsom
  • Specialist
  • New Market, MD
Replied

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

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User Stats

14,270
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10,952
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Theresa Harris
Pro Member
#3 Managing Your Property Contributor
10,952
Votes |
14,270
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Theresa Harris
Pro Member
#3 Managing Your Property Contributor
Replied
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?

  • Theresa Harris
  • User Stats

    117
    Posts
    78
    Votes
    Jana Crum
    • Realtor
    • Phoenix, AZ
    78
    Votes |
    117
    Posts
    Jana Crum
    • Realtor
    • Phoenix, AZ
    Replied

    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.

    User Stats

    3,504
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    3,454
    Votes
    Henry Clark
    Pro Member
    #1 Creative Real Estate Financing Contributor
    • Developer
    3,454
    Votes |
    3,504
    Posts
    Henry Clark
    Pro Member
    #1 Creative Real Estate Financing Contributor
    • Developer
    Replied

    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.

  • Henry Clark
  • User Stats

    58
    Posts
    19
    Votes
    Madri Koppe
    • Interior Decorator
    • California
    19
    Votes |
    58
    Posts
    Madri Koppe
    • Interior Decorator
    • California
    Replied

    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. 

    User Stats

    104
    Posts
    57
    Votes
    Tatum Littleton
    Agent
    • Real Estate Agent
    • Austin, TX
    57
    Votes |
    104
    Posts
    Tatum Littleton
    Agent
    • Real Estate Agent
    • Austin, TX
    Replied
    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!

    eXp Realty-Tatum Littleton Logo

    User Stats

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    2,151
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    Wale Lawal
    Agent
    • Real Estate Broker
    • Houston | Dallas | Austin, TX
    2,151
    Votes |
    4,051
    Posts
    Wale Lawal
    Agent
    • Real Estate Broker
    • Houston | Dallas | Austin, TX
    Replied

    @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!

    User Stats

    3,932
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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
    2,292
    Votes |
    3,932
    Posts
    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
    Replied

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

    User Stats

    18
    Posts
    12
    Votes
    Haiden Welch
    • Investor
    • Santa Clara, United States
    12
    Votes |
    18
    Posts
    Haiden Welch
    • Investor
    • Santa Clara, United States
    Replied
    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.

    User Stats

    71
    Posts
    31
    Votes
    John Steffen
    Agent
    • Real Estate Agent
    • Dallas/Fort Worth, TX
    31
    Votes |
    71
    Posts
    John Steffen
    Agent
    • Real Estate Agent
    • Dallas/Fort Worth, TX
    Replied

    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!

    • Real Estate Agent

    User Stats

    18
    Posts
    12
    Votes
    Haiden Welch
    • Investor
    • Santa Clara, United States
    12
    Votes |
    18
    Posts
    Haiden Welch
    • Investor
    • Santa Clara, United States
    Replied
    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!

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    User Stats

    49
    Posts
    45
    Votes
    Alejandro B Yoon
    • Investor
    • Austin, TX
    45
    Votes |
    49
    Posts
    Alejandro B Yoon
    • Investor
    • Austin, TX
    Replied

    I've househacked twice at 22 years old. 

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

    Definitely still works.

    User Stats

    207
    Posts
    125
    Votes
    Replied

    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. 

    User Stats

    897
    Posts
    712
    Votes
    Jake Andronico
    Agent
    #5 House Hacking Contributor
    • Realtor
    • Reno, NV
    712
    Votes |
    897
    Posts
    Jake Andronico
    Agent
    #5 House Hacking Contributor
    • Realtor
    • Reno, NV
    Replied

    @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.