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House Hacking and running numbers
i’m trying to determine if I need to just save more money or not. I’m having difficulties with running the numbers and understanding if it’s worth house hacking currently. I currently have about 45K saved for an investment property. Is this enough to start house, hacking when I currently own a property with an interest rate of 3.25% and a remaining balance of 106k and I currently pay 1300 in mortgage. what makes better sense to sell this Single family home and start to house hacking and accelerate my portfolio or should I try to keep the houHo and rent out and buy a house hack and go from there.
Most Popular Reply
Yes, $45k is enough to buy a house hack in Chicago. Your cash to close will vary depending on the purchase price, financing, closing costs, etc and you want to be sure to set aside some of that for potential repairs or capital expenditures (roof, HVAC, plumbing and more). If you build a large seller credit (2-3%+ of purchase price) into your offer, you can substantially reduce your cash needed to close.
For your current property, have you done a cash flow analysis to see what the numbers would look like if you rented it out? With your rate being low, that definitely helps your cash flow potential.
I think the ideal situation for you would be to keep your current property as a rental and then buy a house hack.