If House hacking, is it ok to start out with neg. COC

[Paul Deliso]

If I am estimating some multifamily and I plan on living in it for first couple years, is it ok that the deal shows up a negative, but when I estimate that when I move out and have it fully rented that it would then be a positive COC of at least 8%? Has anyone done anything similar as such of this situation?

Thanks!

[Dan Travieso]

Absolutely! The beauty of house hacking is the fact that money you are receiving for rent helps discount how much you are having to pay on the mortgage for the unit you are living in. All in all you are still saving money despite the negative CoC. Take into account future appreciation and you should be setup nicely for a long term investment.