House Hacking and running numbers

[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.

[Jonathan Klemm]

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.