House Hacking in expensive markets - MA and RI
Hello! I am a new investor looking to purchase my first property in Massachusetts or Rhode Island. I have built up enough savings to purchase a multifamily property with an FHA (3.5% down) loan or Fannie mac (5% down) loan. I would like to house hack as my first real estate purchase/investment.
My question is, in today's market, is house hacking still a good option? I am ok with the property not cash flowing right away, but I would like my living expenses to be minimized by a lot if I am house hacking. Ideally, I'd like to live in the property for 1-2 years, and keep it as a long-term rental property when I move out. Therefore, the property would need to cash flow when I move out and rent out all units.
Any thoughts and/or advice is greatly appreciated, thanks!
Most Popular Reply
If I were you I would house hack in RI, specifically in Providence in as good an area as you can afford. Almost nothing on the market there will cashflow while you live in it with LTR, so try to airbnb the units or do furnished rooms for rent, etc. Something to beef up the cashflow so you can at minimum live for free. This will also be a training course on how to landlord, and you can see if you like it or not. Also a good opportunity to learn some DIY maintenance and make some contractor contacts,etc. Are you tied specifically to MA or RI?