How many people have actually done a house hack themselves?
Most Popular Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votesin defense of the recommendation, though, a lot of times they are told to (and I try to say this): save up for a house hack, and then house hack. including reserves and all the Dave Ramsey things.
in nearly every case, it's a better option than many other harebrained RE schemes... or even than starting out by buying a random "cash flowing" rental property (in which case the cash will flow, but... it will be into the property.)
good thread though
52 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes8mo
Technically done it once before it was called house hack over 20 years ago where had a duplex lived in one and rented the other
7e investments53 Reviews- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Chris Seveney:
Technically done it once before it was called house hack over 20 years ago where had a duplex lived in one and rented the other
Would you have done it if it had not been a duplex? Would you have done it if it was a single-family home and without having your own unit? How would you have felt sharing your own personal fridge and living room? - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes8moHeck No. Would not have done it as a single family. No chance on earth. I do have a family member who is 26 right now looking to buy a home and have a few friends live together and rent from him, which is not a bad idea instead of renting, but it definitely is not for everyone.
Quote from @Joe S.:
Quote from @Chris Seveney:
Technically done it once before it was called house hack over 20 years ago where had a duplex lived in one and rented the other
Would you have done it if it had not been a duplex? Would you have done it if it was a single-family home and without having your own unit? How would you have felt sharing your own personal fridge and living room?
For single family, the only use case I see it is the one above, whereby you are younger and in lieu of renting you buy and have some friends as roommates. For those who tell people with families to do this - I would never consider it on a SFR.To me people preaching this and telling everyone and everyone about this strategy is the "looks good on paper" but living with people and dealing with people is not fun. Similar to the "buy a rental in a warzone as it will cashflow" philosophy.
7e investments53 Reviews - 8moJay HurstBusiness MemberLender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Seveney:
Technically done it once before it was called house hack over 20 years ago where had a duplex lived in one and rented the other
Yeah, we lived in the upper floor unit while renting out the downstairs starting 2001 long before it was called a house hack. This duplex was in a neighborhood of mostly single family homes with a scattering of 2-12 unit buildings built in the 20-30's. It was (and is) a very desirable neighborhood that I could not afford to buy a SFR but could afford to buy a 2 family as long as the mortgage was subisidized (not 100% paid) by the tenant. I get questions about house hacking today and if the rent does not cover the entire payment it is not worth it, or they are looking in very bad largely multi family neighborhoods that they do not actually want to live in. I think the expectations have been skewed quite a bit by the term" house hack".
Hurst Real Estate, INC4.989 Reviews
- 8moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
I did with my first place. Worked well and helped me make the mortgage payments. Plus I was in university, so used to sharing a house with others. If I needed to do it again down the road, I'd buy a place with a separate suite and rent it out.
- 8moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I've done a house hack before. It's the best way to break into the market in my opinion. You're reducing housing expenses and you're ideally cash flowing post move out. Win win.
My house hack was a 4 unit. In the unit I lived in, it would Not have been conducive for renting out the other bedroom. That said, the unit above it is a three bedroom and I would have rented by the room if I needed to.
Theres always a spectrum of comfort vs cash flow and everyone is allowed to be somewhere on that spectrum. Wherever you are on that spectrum, so long as the property reduces housing expenses and cash flows after leaving, it's a win in my book.
Brick House CPAs53 Reviews- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8moMy house hack was a 4 unit
Quote from @Aaron Zimmerman:
I've done a house hack before. It's the best way to break into the market in my opinion. You're reducing housing expenses and you're ideally cash flowing post move out. Win win.
My house hack was a 4 unit. In the unit I lived in, it would Not have been conducive for renting out the other bedroom. That said, the unit above it is a three bedroom and I would have rented by the room if I needed to.
Theres always a spectrum of comfort vs cash flow and everyone is allowed to be somewhere on that spectrum. Wherever you are on that spectrum, so long as the property reduces housing expenses and cash flows after leaving, it's a win in my book.
Would you have still done it if you had to share a single-family house and not had your own separate unit? - 8moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
@Joe S. Yes if I had to. Would not be a top choice unless it's with people I knew.
Brick House CPAs53 Reviews
- Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes8mo
House hacking is such a niche thing but they push it like it's a mainstream strategy anybody can do. You just have to "want it" bad enough
Let's be real - It works for single dudes in their early 20s. That's about it. You have a few year period to house hack.
Would I house hack as a family? No. Do I want to live in an area of town with a bunch of affordable MFH? No. Do I want to bring women back to a MFH or a house with roommates? No. Do I want to live that close to most strangers or share common areas with them? No. Did I have more than $200 in my account when I was in college for a downpayment? Nope. Did I have the skills to source undermarket properties? Nope. Rich parents to buy me a house? Nope.
It's really a select few, for a few short years, that a house hack would work for.
- Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes8mo
I’ve done four since 2011. First was a single family and rented out the rooms to friends. Sold the house and joined the military. I was young and it was fine, everyone was doing it. Not as big of a deal as people make it out to be when you live there and used to living with roommates anyway.
Bought a duplex 6 years ago and moved into the basement. Then bought another duplex and moved into the larger unit. Then moved out and into a 3 unit. Moving into our “forever” home sometime this year. Changed my life. Those 3 are valued at almost $3mil and cash flow quite well.
Edit- To the post above me saying it's only a select few that it would work for "a few short years". I did it for 11, without and with a family (without doing by room in a SFR and with in a small multi). It wasn't that bad and millions do it living in apartment buildings. It's really not that big of a deal.
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8moFirst was a single family and rented out the rooms to friends…
Quote from @Mark F.:
I’ve done four since 2011. First was a single family and rented out the rooms to friends. Sold the house and joined the military. Bought a duplex 6 years ago and moved into the basement. Then bought another duplex and moved into the larger unit. Then moved out and into a 3 unit. Moving into our “forever” home sometime this year. Changed my life. Those 3 are valued at almost $3mil and cash flow quite well.
Would you have done a house hack with your family in a single family residence? - Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes8mo
Quote from @Joe S.:
First was a single family and rented out the rooms to friends…Quote from @Mark F.:
I’ve done four since 2011. First was a single family and rented out the rooms to friends. Sold the house and joined the military. Bought a duplex 6 years ago and moved into the basement. Then bought another duplex and moved into the larger unit. Then moved out and into a 3 unit. Moving into our “forever” home sometime this year. Changed my life. Those 3 are valued at almost $3mil and cash flow quite well.
Would you have done a house hack with your family in a single family residence?No, that's what small multi families are for. Single? Buy an SFR and rent the rooms. Married w no kids and young or have a small child? 2-4 unit.
- Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes8mo
Of course I did. When I left my parents home I had never paid rent and didn’t want to start a bad habit. I bought a 4 bedroom home and got a co-worker and 2 friends to rent bedrooms from me. They cut their rent in half and they easily covered the entire mortgage payment and all utilities. I did it for 5 years including the last year with my newly engaged finance. When we got married she said no more. It truly made me hundreds of thousands in appreciation/rent while saving me at least $50k in rent. And this back in the 90’s when that was real money. It was easily more than I may working and basically tax free.
The only thing that helped my finances nearly as much was the first 5 years of our marriage we bought a new primary home every year. We then rented out the previous primary. I can’t imagine how much it would have been worth to combine the two strategies but we with standard LTR.
I can’t believe any young person without a child would consider it such a hardship to not be worth the life changing money. But then my parents were probably guilty of child abue. Our family of five spent our entire childhood in a 3 bedroom 1300sf home. It seems like today’s generation think their first house should 2000+sf even if there’s just 2 of them or 2 and a baby.
The only excuse I could see is if you have no family, no friends, and no trustworthy/like able co-workers. My path would have been harder with strangers. But so many people know people renting 1bedroom apartments with no yard, no garage, no laundry even. That are paying double an amount that would work for them.
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Bill B.:
Of course I did. When I left my parents home I had never paid rent and didn’t want to start a bad habit. I bought a 4 bedroom home and got a co-worker and 2 friends to rent bedrooms from me. They cut their rent in half and they easily covered the entire mortgage payment and all utilities. I did it for 5 years including the last year with my newly engaged finance. When we got married she said no more. It truly made me hundreds of thousands in appreciation/rent while saving me at least $50k in rent. And this back in the 90’s when that was real money. It was easily more than I may working and basically tax free.
The only thing that helped my finances nearly as much was the first 5 years of our marriage we bought a new primary home every year. We then rented out the previous primary. I can’t imagine how much it would have been worth to combine the two strategies but we with standard LTR.
I can’t believe any young person without a child would consider it such a hardship to not be worth the life changing money. But then my parents were probably guilty of child abue. Our family of five spent our entire childhood in a 3 bedroom 1300sf home. It seems like today’s generation think their first house should 2000+sf even if there’s just 2 of them or 2 and a baby.
The only excuse I could see is if you have no family, no friends, and no trustworthy/like able co-workers. My path would have been harder with strangers. But so many people know people renting 1bedroom apartments with no yard, no garage, no laundry even. That are paying double an amount that would work for them.
I did it for 5 years including the last year with my newly engaged finance. When we got married she said no more.
😂
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes8mo
I'm a fan of live in rehabs as a way to save money and build the portfolio in early years but living with strangers or doing the rent by room thing is a hard no for me.
- 8moG. Brian DavisPro MemberInvestor · Hatboro, PA · Member since 2016 · 2k+ posts · 848 votes
Hi @Joe S., I agree, It does feel like house hacking has become very common advice for new investors, and I can see why, as it can be a powerful way to get started for the right person. I didn’t go that route myself, but I do have a few friends who did and had good results. That said, it’s also a very personal lifestyle decision, not just a financial one. I think it’s helpful when people share what worked for them, while also acknowledging that there are multiple paths to getting started.
- 8moShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
@Joe S. I have done it 4 times. When I moved to Gilbert from San Tan Valley in Arizona we purchased a house that had a guest house in the back and we rented out the guest house to a family member. It worked great. Then I moved my family to Burbank, California and we purchased a house there with a guest house in the back and we rented out that guest house for 3 years to a non-family member. I commuted back and forth from Arizona to California during that time. We knew we wanted to move back to Gilbert so we purchased a large house in Gilbert, Arizona with 7 bedrooms because it was the house that my family wanted to move to when we moved back to Arizona. I stayed in one of the rooms when I was in Arizona and I rented out each of the other rooms so I had 6 other roommates. The rent payments helped offset the majority of the cost of the home for a year until my family moved back to Arizona full time.
Here is a quasi house-hack but more of a business building hack. The building where I have my therapy practice came up for sale and I purchased it. The building already had 11 rooms and we added one more and now I use one room and I rent out the other rooms to other therapist.
So those are my house hacks and building hacks.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes8mo
@Joe S. I think you are specifically referring to sharing a single family home. That would be a heck, no! We have 66,000 duplexes in Milwaukee, most of them were originally built a 2 family homes by German immigrants who figured out that by simply stacking another unit on top of the 1st floor they could create a passive income stream with a relativley small investment. The upper has it's own front doors and it's own back door, attick and basement access. Both units have a seperate address and utilities, except water/sewer which is shared.
Financially speaking it's a no brainer. And the lifstyle is not bad, you do only have minor touch points with your neighbors.
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Marcus Auerbach:
@Joe S. I think you are specifically referring to sharing a single family home. That would be a heck, no! We have 66,000 duplexes in Milwaukee, most of them were originally built a 2 family homes by German immigrants who figured out that by simply stacking another unit on top of the 1st floor they could create a passive income stream with a relativley small investment. The upper has it's own front doors and it's own back door, attick and basement access. Both units have a seperate address and utilities, except water/sewer which is shared.
Financially speaking it's a no brainer. And the lifstyle is not bad, you do only have minor touch points with your neighbors.
I think you are specifically referring to sharing a single family home.
Yes, you are correct. I think I should have made that clear. Getting a multi unit property and living in one of the designated units is not really what I consider roughing it nor a house hack. The terms got convoluted.
- Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 605 votes8mo
Yes, I have personally done house hacking and like anything else, what works for one person may not work for another. It ultimately comes down to individual goals and personal comfort level. For those who choose to house share, proper screening and clearly defined expectations upfront are critical. For many first-time investors, house hacking can be an effective entry point but it is not a one size fits all strategy. That said, it clearly works for many people, as evidenced by the success and scale of platforms like Airbnb.
- 8moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
in defense of the recommendation, though, a lot of times they are told to (and I try to say this): save up for a house hack, and then house hack. including reserves and all the Dave Ramsey things.
in nearly every case, it's a better option than many other harebrained RE schemes... or even than starting out by buying a random "cash flowing" rental property (in which case the cash will flow, but... it will be into the property.)
good thread though
- Investor · Member since 2025 · 5 posts · 3 votes8moA house hack is NOT limited to ONLY moving people in your home and renting n out rooms though, so why frame it like that. ???
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8moA house hack is NOT limited to ONLY moving people in your home and renting n out rooms though, so why frame it like that. ???
Quote from @Darryl Marshall:
A house hack is NOT limited to ONLY moving people in your home and renting n out rooms though, so why frame it like that. ???
Curious how you would frame it. Plz share. ✅
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes8mo
House hacking is the one singular strategy that enabled me to go from a hand to mouth wage slave making $18/hr. as a laborer to a successful real estate investor. My first 3 deals were house hacks, each with a value-add component ("live-in flip"). The value add/ forced appreciation part alone made me more money in 6 months than I was making in 3 years at my day job at the time. Purchased with only $4k out of pocket thanks to utilizing the first time home buyer tax credit of $8k available at the time, in my first house hack we had 8 people and 4 dogs living in a 4 bedroom, 4 bath house with a tiny kitchen. My housemates covered almost all of the mortgage, and the house doubled in value during the time I owned it. Much better than paying rent! Some people would never do this themselves or might even look down their nose at it, but being in my twenties at the time and living in an expensive market, everyone I knew had housemates anyway, unless they had a trust fund which I did not. It was actually a lot of fun most of the time, my housemates were all friends and we mostly got along. There were some challenges, not every housemate worked out (like the peyote church leader who ended up growing peyote in his closet and had a giant bonfire in the backyard complete with bongo drums and chanting into the wee hours of the morning one time when I was out of town, annoying the neighbors and attracting the police) but the small difficulties were well worth it and through those challenges I learned how to be a landlord (setting proper expectations, being firm but kind, knowing landlord-tenant laws, treating it like a business, being professional etc.). House hacking usually requires some type of sacrifice in lifestyle compared to having a plush living situation all to yourself. But if you were previously living in a vehicle like I was then it can be a big upgrade actually. That $4k investment in my first house hack changed my life in the best possible way so I highly recommend it as a strategy to other beginners. I wouldn't do it now with my family (at least not the way I did with all of us in a big house, maybe in a duplex or MF I would though) but house hacking 3 times when I was young enough to not mind having housemates was critical to being able to scale up to around 30 units/ a multiple 7 figure portfolio by the time is was in my mid 30's and transition from my day job into being a full time real estate investor. It doesn't have to be as extreme as what I did either, packing a bunch of people into a house. If you start with a duplex/ multifamily or house with a walk out basement, ADU, granny flat/ in-law suite type situation that functions like a multifamily, you can have a very civilized lifestyle and still get all the advantages of house hacking (lower down payment than investment property loan, lower interest than investment property loan, first time home buyer programs, offsetting living expenses by having housemates help pay mortgage, principle pay down, tax benefits, forcing appreciation through value add "live-in flip", and avoiding paying rent which is 100% interest and just wasting money as opposed to investing it).
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Steve K.:
House hacking is the one singular strategy that enabled me to go from a hand to mouth wage slave making $18/hr. as a laborer to a successful real estate investor. My first 3 deals were house hacks, each with a value-add component ("live-in flip"). The value add/ forced appreciation part alone made me more money in 6 months than I was making in 3 years at my day job at the time. Purchased with only $4k out of pocket thanks to utilizing the first time home buyer tax credit of $8k available at the time, in my first house hack we had 8 people and 4 dogs living in a 4 bedroom, 4 bath house with a tiny kitchen. My housemates covered almost all of the mortgage, and the house doubled in value during the time I owned it. Much better than paying rent! Some people would never do this themselves or might even look down their nose at it, but being in my twenties at the time and living in an expensive market, everyone I knew had housemates anyway, unless they had a trust fund which I did not. It was actually a lot of fun most of the time, my housemates were all friends and we mostly got along. There were some challenges, not every housemate worked out (like the peyote church leader who ended up growing peyote in his closet and had a giant bonfire in the backyard complete with bongo drums and chanting into the wee hours of the morning one time when I was out of town, annoying the neighbors and attracting the police) but the small difficulties were well worth it and through those challenges I learned how to be a landlord (setting proper expectations, being firm but kind, knowing landlord-tenant laws, treating it like a business, being professional etc.). House hacking usually requires some type of sacrifice in lifestyle compared to having a plush living situation all to yourself. But if you were previously living in a vehicle like I was then it can be a big upgrade actually. That $4k investment in my first house hack changed my life in the best possible way so I highly recommend it as a strategy to other beginners. I wouldn't do it now with my family (at least not the way I did with all of us in a big house, maybe in a duplex or MF I would though) but house hacking 3 times when I was young enough to not mind having housemates was critical to being able to scale up to around 30 units/ a multiple 7 figure portfolio by the time is was in my mid 30's and transition from my day job into being a full time real estate investor. It doesn't have to be as extreme as what I did either, packing a bunch of people into a house. If you start with a duplex/ multifamily or house with a walk out basement, ADU, granny flat/ in-law suite type situation that functions like a multifamily, you can have a very civilized lifestyle and still get all the advantages of house hacking (lower down payment than investment property loan, lower interest than investment property loan, first time home buyer programs, offsetting living expenses by having housemates help pay mortgage, principle pay down, tax benefits, forcing appreciation through value add "live-in flip", and avoiding paying rent which is 100% interest and just wasting money as opposed to investing it).
I was young enough to not mind having housemates was critical
It sounds like it worked well for you. You’re one of the successful house hackers that actually house hacked instead of apartment / duplex Hacked and then calling it a house hack.
- 8moDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
Quote from @Joe S.:
It seems like everybody and their grandma is telling some new person to go do a house hack. I’m starting to get the idea that many people are preaching stuff that never done it themselves..
Come on folk house hack is where you got people /strangers living with you in the same home. 🧐🤨🥺
Some of the people talking about house hacks don’t appear to me like they’re the kind of people that would like to live in those kind of conditions themselves.
Why are so many people telling others to do something they have not and would not do personally???
Telling folks to buy their own residence is one thing… telling somebody to buy a property and move in a whole bunch of strangers is something totally different. IMO
If you’re one of the minority that’s actually done a house hack you definitely have my respect to go around telling everybody to do a house hack..😁
1) I house hacked (many years ago) as you describe it with my first home purchase but I never rented to strangers. Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
2) I think most of what is being recommended is NOT what you describe. It is to buy a small multi family (which includes ADU additions) and rent out the additional unit(s). They do not live in the same home as you are living in.
My view is both are great ways to get started. Renting to strangers obviously is different than renting to people you know. But most people when they go to university live with people they did not know. Sometimes it creates lifelong friendships. Strangers are not strangers for long when you live together.
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Dan H.:
Quote from @Joe S.:
It seems like everybody and their grandma is telling some new person to go do a house hack. I’m starting to get the idea that many people are preaching stuff that never done it themselves..
Come on folk house hack is where you got people /strangers living with you in the same home. 🧐🤨🥺
Some of the people talking about house hacks don’t appear to me like they’re the kind of people that would like to live in those kind of conditions themselves.
Why are so many people telling others to do something they have not and would not do personally???
Telling folks to buy their own residence is one thing… telling somebody to buy a property and move in a whole bunch of strangers is something totally different. IMO
If you’re one of the minority that’s actually done a house hack you definitely have my respect to go around telling everybody to do a house hack..😁
1) I house hacked (many years ago) as you describe it with my first home purchase but I never rented to strangers. Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
2) I think most of what is being recommended is NOT what you describe. It is to buy a small multi family (which includes ADU additions) and rent out the additional unit(s). They do not live in the same home as you are living in.
My view is both are great ways to get started. Renting to strangers obviously is different than renting to people you know. But most people when they go to university live with people they did not know. Sometimes it creates lifelong friendships. Strangers are not strangers for long when you live together.
Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
Sounds like it worked out well for you… Do you think the majority of those promoting house hacks have done it themselves..
- 8moDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
Quote from @Joe S.:
Quote from @Dan H.:
Quote from @Joe S.:
It seems like everybody and their grandma is telling some new person to go do a house hack. I’m starting to get the idea that many people are preaching stuff that never done it themselves..
Come on folk house hack is where you got people /strangers living with you in the same home. 🧐🤨🥺
Some of the people talking about house hacks don’t appear to me like they’re the kind of people that would like to live in those kind of conditions themselves.
Why are so many people telling others to do something they have not and would not do personally???
Telling folks to buy their own residence is one thing… telling somebody to buy a property and move in a whole bunch of strangers is something totally different. IMO
If you’re one of the minority that’s actually done a house hack you definitely have my respect to go around telling everybody to do a house hack..😁
1) I house hacked (many years ago) as you describe it with my first home purchase but I never rented to strangers. Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
2) I think most of what is being recommended is NOT what you describe. It is to buy a small multi family (which includes ADU additions) and rent out the additional unit(s). They do not live in the same home as you are living in.
My view is both are great ways to get started. Renting to strangers obviously is different than renting to people you know. But most people when they go to university live with people they did not know. Sometimes it creates lifelong friendships. Strangers are not strangers for long when you live together.
Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
Sounds like it worked out well for you… Do you think the majority of those promoting house hacks have done it themselves..
No, I believe most have not house hacked in either form.
However, I think most (virtually all) have had roommates at some point. There is some difference being the owner, but the bigger issue is living with less than ideal roommates and that most people have experienced roommmates and roommates are not necessary to house hacked (a MF house hack)
When I was in college (long ago) a friend of mine had 2 roommates that never purchased tp. None of them (including my friend) purchased napkins or paper towels. My friend got tired of being the tp supplier. I found this out when I needed to take a $hit at his place. I asked what he used for tp and he indicated he used the coffee filters because his roommates needed their coffee and would buy coffee filters when the supply got low. A Coffee filter is not a good substitute for tp.
My point is virtually no one is the ideal roommate and most people have had roommates (I commuted when I went to university so my first roommates (not including family) were my house hacking roommates).
I think it is rare today for someone to have never had a roommates. My son went to UC Santa Barbara. The lodging there is so expensive that a regular size bedroom typically has 3 people in it. His girlfriend when I first met her had 5 people in what was a 1 BR, but an open loft had been converted to close to a bedroom. Bunks are built into many of the bedrooms. There is/was a parking lot for people living in their vehicles.
I do not think having a roommate when you are young is as bad as some of us old timers would find it to be now. My son currently shares a bedroom with his girlfriend, his girlfriends’s sister is renting the 2nd bedroom, and a young marine corps officer that they did not know prior to him applying to rent the room is renting the 3rd bedroom. It is luxury sized compared to their school housing situation. 3 br, 3 bathroom, ~1350’ small dedicated outdoor space and a nice common space for 4 people (rent is $4500 (Point Loma)).
house hacking means you are not paying rent. Even if you could rent for less than the cost of house hacking, you are getting the equity paydown and the appreciation. You are in effect controlling an expensive asset at a monthly cost of the difference between what you pay to own (all costs including piti, maintenance/cap ex, vacancy, misc) versus rent. Ideally you cost is less than renting but I believe the majority who believe this at high LTV have done poor or, worse, no underwriting. But if you can have a high cost asset at a couple/few hundred a month and get the equity pay down and appreciation it seems better than most other options.
I continue to advocate for young RE investors to consider starting by house hacking. - Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Dan H.:
Quote from @Joe S.:
Quote from @Dan H.:
Quote from @Joe S.:
It seems like everybody and their grandma is telling some new person to go do a house hack. I’m starting to get the idea that many people are preaching stuff that never done it themselves..
Come on folk house hack is where you got people /strangers living with you in the same home. 🧐🤨🥺
Some of the people talking about house hacks don’t appear to me like they’re the kind of people that would like to live in those kind of conditions themselves.
Why are so many people telling others to do something they have not and would not do personally???
Telling folks to buy their own residence is one thing… telling somebody to buy a property and move in a whole bunch of strangers is something totally different. IMO
If you’re one of the minority that’s actually done a house hack you definitely have my respect to go around telling everybody to do a house hack..😁
1) I house hacked (many years ago) as you describe it with my first home purchase but I never rented to strangers. Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
2) I think most of what is being recommended is NOT what you describe. It is to buy a small multi family (which includes ADU additions) and rent out the additional unit(s). They do not live in the same home as you are living in.
My view is both are great ways to get started. Renting to strangers obviously is different than renting to people you know. But most people when they go to university live with people they did not know. Sometimes it creates lifelong friendships. Strangers are not strangers for long when you live together.
Everyone I rented to I knew prior to renting them the room and one of those people is my wife (rented to her before we were married).
Sounds like it worked out well for you… Do you think the majority of those promoting house hacks have done it themselves..
No, I believe most have not house hacked in either form.
However, I think most (virtually all) have had roommates at some point. There is some difference being the owner, but the bigger issue is living with less than ideal roommates and that most people have experienced roommmates and roommates are not necessary to house hacked (a MF house hack)
When I was in college (long ago) a friend of mine had 2 roommates that never purchased tp. None of them (including my friend) purchased napkins or paper towels. My friend got tired of being the tp supplier. I found this out when I needed to take a $hit at his place. I asked what he used for tp and he indicated he used the coffee filters because his roommates needed their coffee and would buy coffee filters when the supply got low. A Coffee filter is not a good substitute for tp.
My point is virtually no one is the ideal roommate and most people have had roommates (I commuted when I went to university so my first roommates (not including family) were my house hacking roommates).
I think it is rare today for someone to have never had a roommates. My son went to UC Santa Barbara. The lodging there is so expensive that a regular size bedroom typically has 3 people in it. His girlfriend when I first met her had 5 people in what was a 1 BR, but an open loft had been converted to close to a bedroom. Bunks are built into many of the bedrooms. There is/was a parking lot for people living in their vehicles.
I do not think having a roommate when you are young is as bad as some of us old timers would find it to be now. My son currently shares a bedroom with his girlfriend, his girlfriends’s sister is renting the 2nd bedroom, and a young marine corps officer that they did not know prior to him applying to rent the room is renting the 3rd bedroom. It is luxury sized compared to their school housing situation. 3 br, 3 bathroom, ~1350’ small dedicated outdoor space and a nice common space for 4 people (rent is $4500 (Point Loma)).
house hacking means you are not paying rent. Even if you could rent for less than the cost of house hacking, you are getting the equity paydown and the appreciation. You are in effect controlling an expensive asset at a monthly cost of the difference between what you pay to own (all costs including piti, maintenance/cap ex, vacancy, misc) versus rent. Ideally you cost is less than renting but I believe the majority who believe this at high LTV have done poor or, worse, no underwriting. But if you can have a high cost asset at a couple/few hundred a month and get the equity pay down and appreciation it seems better than most other options.
I continue to advocate for young RE investors to consider starting by house hacking.
I continue to advocate for young RE investors to consider starting by house hacking.
Well continue to advocate Dan. You did it .✅
The advocates in question is the ones that are advocating it, but hadn’t done it…..Si
- Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes8mo
Anyone with an internet connection is an expert...on all subjects.
- Investor · Cleveland, OH · Member since 2013 · 120 posts · 77 votes8mo
I purchased my first duplex in 2006 was able to live in one unit the upstairs and rent the downstairs out to a long standing tenant who is still in the property I was able to pay it off in 2020 it was a great decision.
- Investor · Cincinnati/Fort Thomas, KY · Member since 2015 · 206 posts · 183 votes8mo
@Joe S.
My parents started in 1960s buying a 4 family on owner finance, living in one unit and renting out 3. I started in 1994 with duplex living in a unit and renting out the other.
My 22 yo daughter started in 2023 with a single family she bought on her own credit and with her downpayment that she rented out to two roommates.
My advice since 1994 is always while you’re used to living in apartments / having roommates - buy a property to house hack.
- Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes8mo
Quote from @Sandra Morrison:
@Joe S.
My parents started in 1960s buying a 4 family on owner finance, living in one unit and renting out 3. I started in 1994 with duplex living in a unit and renting out the other.
My 22 yo daughter started in 2023 with a single family she bought on her own credit and with her downpayment that she rented out to two roommates.
My advice since 1994 is always while you’re used to living in apartments / having roommates - buy a property to house hack.
Your parents did it, you did it, and now your daughter has. I respect that. I think where my issue came in is where a lot of people that never did a house hack was telling other folks to do it. The way I saw a house hack was actually a single-family residence, not duplexes and above. It appears your daughter is doing it the way I envisioned it however she is young. Not too many people would want to do that unless they were young and single in my opinion.
Anyways, that was inspiring.
- 8moSam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Quote from @Sandra Morrison:
@Joe S.
My parents started in 1960s buying a 4 family on owner finance, living in one unit and renting out 3. I started in 1994 with duplex living in a unit and renting out the other.
My 22 yo daughter started in 2023 with a single family she bought on her own credit and with her downpayment that she rented out to two roommates.
My advice since 1994 is always while you’re used to living in apartments / having roommates - buy a property to house hack.
That's awesome. I got my first in 2023 as well, looking to get my 2nd in the coming months once my taxes are done. I say this because your area, but I am also looking to be in Fort Thomas type area for my next, love that area
Sam McCormack Realtor
- 8moV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Househack is the antithesis of family formation.
Don't buy duplex, triplexes, or quadplexes. Terrible investments. If you're going to "house-hack" buy a SFR and rent out the rooms. You can have a 4/2 duplex, or a 4/2 SFR in the same location. It's likely the SFR prices better; there's a reason for that.
Anyone that does this the money comes from the value add, and right now those properties are few & far between but yes possible. Don't mistake that with the house hack creating the opportunity, it's still the value add.
Slow thinkers like that @Gregory Schwartz guy I think does this. Could be wrong, he could clarify though.
- Real Estate Agent · Columbus, OH · Member since 2023 · 9 posts · 8 votes8mo
I do it currently! 25, single girl, live with my best friends who happen to pay down my mortgage and split utilities. Bought right out of college and felt like a natural next step. Can't imagine a scenario where I would enjoy it with a family unless it was a duplex.
- Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes8mo
You do them in a 2 to 4 unit so have your own unit same as any apartment. I did my first deal as a house hack 4 unit in a class A/B part of Chicago. Pretty much all my clients under 30 did the same as its hard to afford 25% down on a building in a good area otherwise, house hack lets you get in at 5% down.
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes8mo
I did a live in flip as a house hack. Looking back I wish I did a 2-4 unit but wanted a house. The house I bought was a cosmetic rehab, Bought for 220K, "As Is" appraised for 224K. Used the 5% conventional down. Current value 300K. I made some mistakes when rehabbing, spent too much on the bathrooms and learned lessons. Looking back I wish I did more research, due diligence before diving straight in. Even with making mistakes I do have equity and I am thankful I did a live in flip.
- Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes8mo
I've done it and continue to do it. It's the best way for the "average" person to build a rental portfolio and build wealth. You only need to put down 3.5% - 5% down on a 2-4 unit, live in it for a year, and then rinses and repeat. It helps to offset the mortgage & the home improvements are often write offs.
- Rental Property Investor · Boston MA · Member since 2020 · 48 posts · 20 votes8mo
I've done it. It works
- 8moSarita ScherpereelBusiness MemberReal Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
I do it! I'm 42 and I live in the top duplex up in my 3 unit building in one of the nicest areas of Chicago. I love it and help my clients do the same. I just helped someone in their 50's buy their first house hack after they lived in their condo. You can do this at any age. At least in Chicago, where we have inventory for all buyer goals.
I understand what you're saying about practicing what you preach. If people are buying a house hack with out actually living in it that is mortgage fraud. It's terrible that it happens not just because of the high levels of risk but because they are missing out on the growth of living on site in these buildings.
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