First time home buyer: House Hack or Rent?

[Cameron Mayes]

Hi,

I'm looking to get started in REI but am teetering back and forth between house hacking and simply renting out a long distance property. Reason being is that I live in an area where home prices are pretty steep so house hacking would probably be the most financially responsible option if I didn't want to relocate and also live in the property. That said, I've been doing some browsing of properties in other states that seem within my budget but given I'm inexperienced, I'm hesitant on that front as well. I guess it comes down to the math and what I am comfortable with but any tips or advice would be greatly appreciated.

Thanks!

[Nathan Gesner]

Quote from @Cameron Mayes:

A house hack requires 3.5% down. On a $500,000 fourplex, that will take $17,500.

A $200,000 fourplex in another state will require 20% down or $40,000.

Buying local and expensive is the better option.