Journey from multiple house hacks to changing strategy

[Robert Johnson]

I wanted to share my house hacking experiences so far, since reading other people’s stories here helped me get started.

My first house hack was a duplex. I lived in one side and rented out the other, and for the first 6 months my out-of-pocket mortgage payment was only $28/month. That part was awesome. The not-so-awesome part was that it was in a rough neighborhood, which made it tough to find and keep good tenants. It was a great learning experience, but it definitely showed me that location matters just as much as the numbers.

My second house hack was a single-family home with an ADU in the backyard, this time in a much nicer neighborhood. That made a huge difference. Both units were easy to rent, and they've stayed occupied even after I moved out and into my current live-in BRRRR project.

For all my properties, I’ve stuck with long-term tenants rather than short- or mid-term rentals. Both of my first two are cash flowing a little, but they’re really more appreciation plays for me right now. They both have 6.5% and 6.99% interest rates, so I’m looking forward to refinancing when rates drop to improve the cash flow.

I’m definitely in the camp that it’s better to be in the market than try to time the market. Every property I’ve bought so far has taught me something and put me in a better position for the next move.

Curious to hear if anyone else has made the jump from a house hack into a live-in BRRRR and how that transition worked for you?