House Hacking and running numbers

Rental Property Investor · Member since 2019 · 14 posts · 18 votes

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.

9 Reply

477 views

Most Popular Reply

Jonathan KlemmBusiness Member

Moderator

Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes

7mo

What's up @David Walker! Great questions to be asking!

What's your end goal with real estate? Are you looking to exit a w2? Are you looking to build wealth?

Each person's situation is unique, and yours is no exception. How much will your current single-family home rent for as is? If it cashflows and it's in a good area? What part of Chicago is it in? It might make sense to keep.

If it won't cash flow well on its own and you'll just be dumping money into it, you should sell.

In my opinion, house hacking is by the far the best way to get started and scale into multi-family properties. I suggest buying in area you want to live and be fine with an "OK" deal - the perfect ones dont come right away.

[email protected]

Quality Builders4.966 Reviews

Website View Page

3 Reply

See this reply in the discussion

29 Replies

Jump to latestLatest

Sort by

Juan Yepes
Lender · Miami, FL · Member since 2025 · 123 posts · 34 votes
7mo
Hi David,
45k is enough considering when you house hack you are able to take advantage of primary residence low down payment options.
Whether you rent or sell your current primary depends on a few things. Primarily, what are the rents going for in your area? Would you be happy with the cash flow from this property as a rental? If no, then you might want to consider selling.
1 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
7mo
I would consider keeping your current primary residence if it cash Flows unless there's significant equity that it doesnt Make sense as a rental.

$45k is definitely enough to get started in Chicago. You'll still want to go with a Lower money down program such as 5%. Where are you looking?
[email protected]
Brick House CPAs53 Reviews
Website View Page
1 Reply
Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
7mo
What's up @David Walker! Great questions to be asking!
What's your end goal with real estate? Are you looking to exit a w2? Are you looking to build wealth?
Each person's situation is unique, and yours is no exception. How much will your current single-family home rent for as is? If it cashflows and it's in a good area? What part of Chicago is it in?  It might make sense to keep.
If it won't cash flow well on its own and you'll just be dumping money into it, you should sell.
In my opinion, house hacking is by the far the best way to get started and scale into multi-family properties.  I suggest buying in area you want to live and be fine with an "OK" deal - the perfect ones dont come right away.
[email protected]
Quality Builders4.966 Reviews
Website View Page
3 Reply
Ryan SpathBusiness Member
Real Estate Agent · Boise, ID · Member since 2017 · 565 posts · 377 votes
7mo
Quote from @David Walker:

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.

Great questions. The current property payment is $1300, what will this rent for if you move out? If you house hack and use a low down payment type loan, FHA 3.5% or conventional 5% down, couple of thngs you need to ask yourself.
1. After you make the downpayment on the new property do you have enough reserves to make repairs, have $ in an account for cap x, float vacancy. you want a minimum of 3 months reserves for all mortgages + a reasonable amount saved for the above mentioned.
2. The earlier you treat this like a business and define your rules, the easier these decisions become. If you decide you need 3 months of mortgage payments and 10k per property in the bank before the next accusation the easier these decisions become. In my experience real estate can be a capital intensive business and we need to be prepared for these items
[email protected]208-600-2814
2 Reply
- David Walker
  OP
  Rental Property Investor · Member since 2019 · 14 posts · 18 votes
  6mo
  @Ryan Spath if I were to buy a house hack with the 45k lets say I put about 30k in all I don't think I will have enough reserves for anything happening between the two properties as well as floating vacancy while I stabilize. I'm worries about overleveraging with HELOCs and I feel that eventually I will hit a dead end in scaling because of that leverage
  1 Reply
Paul De Luca
Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
7mo
@David Walker
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.
2 Reply
Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
7mo
The point of building wealth is to keep, not sell.
With that said, it can make sense to sell ONLY if you can put the money to better use. This typically means scaling up or out of a bad situation.
So a couple of thoughts:
-Could you house hack your current home?
-Can you cash flow including a HELOC that you can use towards a down payment on another property?
-How many years left do you have on the current loan?
-What would you be buying?
0 Reply
- David Walker
  OP
  Rental Property Investor · Member since 2019 · 14 posts · 18 votes
  6mo
  @Rick Albert I can rent out my current SFH but I should be cash flowing around $300 when it's all said and done. I anticipate with the neighborhoods that I'm looking at and the price ranges of 550k-600k plus I will be pretty thin after getting the 3 flat. With a HELOC I think that may put me in the same situation of being cash thin after purchase and having bot properties. I have about 16 years left on the SFH. I'm trying figure out how scale with putting myself in danger with the intention of financial freedom through real estate.
  0 Reply
Jarret Jarvis
Real Estate Agent · Chicago · Member since 2021 · 168 posts · 62 votes
7mo
This is a good question, and honestly you’re in a better position than you probably think.

I’m a big believer in house hacking because it’s something I personally do myself. I look at it less as buying an investment property and more as turning your primary residence into something that helps pay for itself while you build equity. The goal is lowering your living expenses so you can save more and scale faster. That strategy is a big part of how I’ve been able to grow my portfolio to 21 units, keeping my housing costs low allowed me to consistently save and redeploy money into the next purchase.

A few thoughts based on what you shared:

First, that 3.25% interest rate is extremely strong. Cheap debt like that is hard to replace, so selling your current home isn’t automatically the best move. If the property would rent close to or above your $1,300 payment, keeping it could make a lot of sense long term.

Second, $45K is often enough to start house hacking using owner-occupied financing depending on price point and market. Most people don’t need to wait until they feel fully ready.

The real question is whether keeping your current home still allows you to qualify comfortably for the next purchase. If it rents well and doesn’t hurt your debt ratios, keeping it and buying a house hack is usually the stronger long-term play. If it prevents you from moving forward, then selling might accelerate things.

If you want, send me the estimated value of your current home, what you think it would rent for, and the price range you’re considering for the next purchase. I’m happy to help you run through the numbers and see what path makes the most sense.
2 Reply
David Walker
OP
Rental Property Investor · Member since 2019 · 14 posts · 18 votes
7mo
Thank you all for your replies. My current home is estimated to be worth about 300k in the Belmont Craigin area I owe about 100k on it with the 3.25% rate. I have about 18 years into the mortgage left. I recently came across a property this is about 550k listed but I have come concerns about making the transition from my current home and renting it out and acquisition of a 3 flat while stabilizing both. Im sure I can cash flow my current single family home as rent in the area are between 1,800 and 2,000 a month.
1 Reply
Kyle HendricksPro Member
Lender · Member since 2021 · 170 posts · 74 votes
7mo
@David Walker Sounds like you are in a great spot. The biggest regret most investors typically have are the properties they sold. I would do everything I could to keep your current property. Great equity, great debt, and cash flows, that is a beautiful thing. As far as 45k saved, that is more than enough for your next househack. At 550k for your next one you should be around 27.5k down with a conventional 5%. With the market right now there is a good chance you can get the seller to pay your closing costs for you. (Even if not you have more than enough and still a cushion for rainy day)

What do the numbers look like on your next potential househack? How many units, projected rents, etc.?
[email protected]253-355-0247
2 Reply
Ryan ThomsonBusiness Member
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
7mo
Do not sell it. That 3.25% rate on a $300K property with $1,800-2,000/month rent potential is a keeper. You cash flow $500-700/month before expenses on a $1,300 payment. Giving that up to start over at 6.25% is a step backward.
On the $550K 3-flat: Chicago has properties from 2020-2022 with VA or FHA loans at 2.5-3%. Assuming one of those instead of getting a new loan at 6.25% on a $450K balance saves around $800/month. That is the difference between a house hack that works and one that does not at that price point.
I specialize in assumable mortgage deals and have closed 7+ of these. Timeline is 45-90 days and the equity gap is the main hurdle, but on a $550K Chicago 3-flat the monthly payment savings are significant enough to make the gap worth working through.
Worth filtering specifically for assumable FHA/VA inventory when you search. What type of loan is on your current SFH? If it is FHA, it is assumable and that changes your selling strategy someday too.
The Assumable Guy544 Reviews
Website View Page
1 Reply
Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
7mo
Hey @Ryan Thomson - How do you go about finding these assumable mortgages? Have you done any here in Chicago?
It sounds like an awesome avenue in today's market, but the key is finding the right seller who is willing to let you assume the loan.
Also, I am potentially selling one of my buildings that has a 4% interest rate. Is there a way I can find a buyer who would be willing to assume and then charge more?
[email protected]
Quality Builders4.966 Reviews
Website View Page
1 Reply
- Jennie Berger
  Lender · Chicago IL · Member since 2020 · 357 posts · 229 votes
  5mo
  Quote from @Jonathan Klemm:
  
  Hey @Ryan Thomson - How do you go about finding these assumable mortgages? Have you done any here in Chicago?
  It sounds like an awesome avenue in today's market, but the key is finding the right seller who is willing to let you assume the loan.
  Also, I am potentially selling one of my buildings that has a 4% interest rate. Is there a way I can find a buyer who would be willing to assume and then charge more?
  
  @Jonathan Klemm Jason Wagner (my managing broker at Greystone Realty) is someone I’d point you to - he’s done quite a few of these over the past couple years and has gotten some really strong outcomes for sellers.
  
  From what I’ve seen, the opportunity is real, but there are definitely a couple friction points. The biggest ones tend to be timing (these can drag out 60–90+ days pretty easily) and the cash gap - buyers have to bridge the difference between the loan balance and your price, which can be significant. So your buyer pool shrinks to people with real liquidity. Some lenders will do a 1st and 2nd position loan with the buyer to help bridge that gap...
  
  That said, in the right scenario, that 4% debt is a huge asset. I’d be thinking less about “charging more” and more about how to position that financing as part of the value — the right buyer will absolutely pay for it. Curious what kind of building it is and what your current loan balance looks like, that usually dictates how viable the assumable route really is.
  
  1 Reply
Bryon AndrewsBusiness Member
Real Estate Agent · Saint Paul, MN · Member since 2018 · 201 posts · 104 votes
7mo
Quote from @David Walker:

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.

Personally, I think you are in a fantastic spot to start house hacking! By utilizing low down payment, owner occupied loans, you will be able to purchase a small multifamily property. I also recommend that you try to keep the single family property as a rental as well. Sounds to me like you are in a better position that you realize!
[email protected]715-892-4596
Bryon Andrews Real Estate51 Review
View Page
0 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
6mo
You need roughly 5% down and close costs can be wrapped into loan with a seller credit, I also always recommend clients they have some reserves set aside for repairs. So depending on what part of Chicago you can use these as rough guidelines of capital required. Can you possibly get a HELOC on the single family to use towards a house hack? But regardless if can get into a 4 unit, etc. it tends to be a much better long term investment then holding a house. Chicago is awesome as our rents tend to grow every year and hold up strongly. I house hack a 4 in Rogers Park and have seen it double in value as well as almost double in rents since bought it. Feel free to PM to chat more about house hacking in Chicago.
0 Reply
Ebonie Beaco
Lender · Chicago, IL · Member since 2025 · 204 posts · 101 votes
6mo
The first thing that really stands out is your 3.25% interest rate. From both a financing and investment perspective, that is a very strong asset to hold onto if the property can perform as a rental. In today’s interest rate environment, it is extremely difficult to replace that type of financing. Because of that, many investors will run the rental numbers first before deciding to sell, since keeping low rate debt while adding another property can accelerate portfolio growth.

With about $45K saved, you are actually in a position where house hacking could be very realistic depending on the price point of the next property and the loan structure you use. Many house hackers utilize owner occupied financing programs such as FHA or low down payment conventional loans, which can allow you to purchase a property with a relatively small down payment while still preserving capital for reserves, repairs, and future investments.

From an investor standpoint, the key is really running the numbers on both properties. I usually advise investors to look at three things. First, what your current home would realistically rent for in the market compared to your mortgage, taxes, insurance, and maintenance reserves. Second, what the payment would look like on the next property and how much of that could be offset through rental income if you are house hacking. Third, what your total monthly housing cost looks like after that rental income is applied.

If your current property can at least break even or generate some cash flow, many investors prefer to keep it and convert it into a rental rather than selling it. That allows you to go from one property to two instead of resetting back to one, which is often how people begin building momentum in real estate investing.

This is where running accurate numbers becomes really important because a property that works well as a house hack can dramatically reduce your personal housing cost while adding another asset to your portfolio at the same time.

Out of curiosity, have you already looked at what your current home could rent for in your market? That number usually becomes the biggest deciding factor in whether holding it as a rental makes sense.
0 Reply
David Walker
OP
Rental Property Investor · Member since 2019 · 14 posts · 18 votes
6mo
The problem I'm having is also that I can't find a 3 flat were the numbers are not tight after closing. I'm wondering if I should sell the SFH just to be liquid enough to have reseaves and move on another 3 flat in a year or so.
0 Reply
Sam TatoPro Member
Investor · Buffalo, NY · Member since 2026 · 42 posts · 19 votes
6mo
Hey David! Definitely consider opening a HELOC as soon as you can if you think you’ll be keeping your current residence. Rates are much more favorable for an owner occupied single family. Much harder to find companies that offer HELOCs on investment properties. This way you will have it ready as a reserve in case of unexpected expenses.
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
6mo
Quote from @David Walker:

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.

What can you rent your current house for?
What is the resulting ROI?
Guessing the numbers, and many naive BP posters, will say to sell.
Challenge: also going to guess your current home is a Class A property.
Which means you could NOT buy it today with 20-25% down and cashflow.
BUT, Class A rentals attract the best tenants, are the easiest to manage and appreciate the most, relative to the local market.
How do you evaluate all that?
$45k combined with an FHA 203(k) or FNMA Homepath mortgage, where reno costs can be included in the purchase mortgage, should be enough to househack - just make sure you have reserves.
Where can you get reserves?
Take a HELOC out on your current primary BEFORE buying another primary.
Do NOT over-leverage though!
[email protected]248-209-6824
Logical Property Management4.9458 Reviews
Website View Page
0 Reply
Ryan SpathBusiness Member
Real Estate Agent · Boise, ID · Member since 2017 · 565 posts · 377 votes
6mo
@David Walker
Rome wasn't built in a day and neither is a strong rental portfolio. If you start with strong fundamental and stick to it you will likely build a meaningful portfolio that can withstand the ups and downs of the market. Being undercapitalized in this industry is never a position you want to find yourself in. There will always be another property, another deal, and you have plenty of time to build a portfolio.
[email protected]208-600-2814
0 Reply
Ryan ThomsonBusiness Member
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
6mo
Jonathan - two questions so I will take them separately.
Finding assumable inventory: Roam.com is the fastest starting point. They aggregate FHA and VA listings with the rate and remaining balance already surfaced, so you can search by payment savings before you even call the listing agent. Any VA or FHA loan originated before 2023 is assumable by law, so on the MLS you can filter by loan type in markets where that field is populated. Most buyer agents don't know to look, which is the whole arbitrage right now. I have a VA running a dedicated search pulling 2-3 qualifying properties per week in my market.
I'm Colorado-based so I haven't closed any in Chicago specifically, but the mechanics are identical. It's a federal program, not a local one. The equity gap size changes by market appreciation, but the process doesn't.
On your 4% building: first question is what type of loan is on it. If it's FHA or VA, it's assumable. Conventional has a due-on-sale clause that blocks it.
If it is FHA or VA: at 4% vs 6.25% today, on a $400K balance that's about a $500/month payment difference. On a multi-unit where rents are carrying the mortgage, $500/month is the line between cash flowing and breaking even at this price point in most markets. That's real money for a buyer.
The way to position it as a seller: lead with "assumable at 4%" in the listing headline, price at market, and let the math close it. Buyers who understand assumables will come in at or above ask because the alternative is a $6K/year payment penalty every year for the life of their loan. Most sellers with assumable loans don't realize what they're sitting on.
The Assumable Guy544 Reviews
Website View Page
1 Reply
Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
6mo
Hey @Ryan Thomson - I tried that Roam.com, and it looks like a broken website or something that is not built yet.
[email protected]
Quality Builders4.966 Reviews
Website View Page
0 Reply
- Ryan ThomsonBusiness Member
  Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
  6mo
  Quote from @Jonathan Klemm:
  
  Hey @Ryan Thomson - I tried that Roam.com, and it looks like a broken website or something that is not built yet.
  
  Try WithRoam.com or TheAssumableGuy.com
  The Assumable Guy544 Reviews
  Website View Page
  1 Reply
Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
6mo
I agree with a lot of the responses here. I wouldn’t be so quick to give up that 3.25% mortgage. That’s a really strong asset to have.

It’s definitely worth taking a step back and running the numbers on what the property could rent for in your market. If it can cash flow, or even just break even, holding onto it while you move into a house hack could be a much stronger long term move than selling.

$45K can absolutely work too, depending on your market and the loan program you qualify for. You may have more options than you think.

TLDR: If that Chicago property can rent for enough to cover itself, I would strongly consider holding it and house hacking your next place. You would be on your way to building a portfolio!
0 Reply
Piotr Senkow
Real Estate Agent · Chicago, IL · Member since 2026 · 13 posts · 12 votes
6mo
@David Walker - you mentioned you can't find a 3-flat where the numbers aren't tight. I'm DM-ing you an example of an underwriting for an active listing, a 3-flat nearby in Irving Park, listed at $599,900.

The reported rent is $5,600/mo across 3 units, with 29 comparable 3-flat sales in the neighborhood at a $613K median - so it's priced in line with comps.

As a house hack at 5% down, your PITI is around $4,500/mo. If the other two units bring in roughly $3,700/mo, you're looking at about $800/mo out of pocket for housing - less than renting a one-bedroom. You're building equity in a building that comps say is worth what you paid.

The numbers are tight - but tight for a house hack means you're paying $800/mo to live in a 3-flat you own instead of paying someone else's mortgage. That's the math that makes the strategy work even when the pure cash flow doesn't look exciting on paper.

One thing to watch for at this price point - check whether the current owner has a Homeowner Exemption on the tax bill. If they do, your taxes will be higher after closing.

On some properties that difference is $100-200/mo, which can push a workable deal into uncomfortable territory fast.
0 Reply
Lindsay DavisBusiness Member
Real Estate Broker · Birmingham, AL · Member since 2019 · 326 posts · 201 votes
5mo
@David Walker,

I want to chime in on something underdiscussed (that only @Rick Albert's mentioned) so far: can you house hack your current property?

Most of the time, people think of a house hack as buying a duplex, living in one half, and renting the other half out. That’s the most privacy-preserving approach, but you can also house hack a single-family home by renting out a few rooms in your current place. That could potentially cut your mortgage in half or even more.
205-205-4118
Spartan Invest4.8134 Reviews
Website View Page
1 Reply
Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
5mo
Hey David, a little late to this one, but it does sound like you’re in a really good spot here (like someone else mentioned above) and you’ve got a few options to think through.

If you’re in a position where you can rent out one of the rooms in your current home, that could actually be a solid way to get into house hacking now. From a tax perspective, you may be able to allocate a portion of your expenses like mortgage interest, utilities, and insurance to the rental use. But more than that, it gives you hands-on experience managing a property, seeing how house hacking actually works in real life, and it lowers your monthly housing cost so you can save more toward your next investment and maybe feel a little more comfortable with it.

On your current property specifically, I’d be cautious about selling it. With that rate and monthly expense, you're actually a really strong position. You don’t really see that kind of financing anymore, so in most cases it’s something worth holding onto if you can. So it really comes down to how you want to play this. If you sell, you’re basically restarting and going all-in on a house hack, which can work if the next property is clearly better and more scalable. But you are giving up a really good loan in the process. If you keep it, you still have the option to turn it into a rental later and use your $45K to go after a separate house hack, which lets you build without having to start over.

I would just make sure you're thinking about how everything fits into your overall tax and investment strategy so you're not missing opportunities or locking yourself into a move too early. If you're a high-earning W-2 employee or even business owner, you may consider other investment strategies to potentially offset that income like investing in a STR instead. It's worth reaching out to a CPA who specializes in real estate if that sounds like you and it's probably worth it to reach out to an agent and lender just to see what options are out there for your next house hack investment. That's when you can really run the numbers. Good luck and happy to connect!
[email protected]941-914-7779
INVESTOR FRIENDLY CPA®5241 Reviews
Website View Page
TaxMD® | AI-Powered Tax Planning
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.