My House Hacking Experience in Cleveland (Is it Right for You?)

[Andrew A.]

House Hack: Buy a multifamily.  Live in one unit and rent out the other unit(s).  

I'm in my 30's, introverted, enjoy my own privacy, and value my sleep like no other. I was in San Diego, found a great deal on the MLS, made the phone call to my agent and bought a duplex in Cleveland. One plane ticket and over a year later, here I am sharing my experiences and recommendations with you.

IT'S JUST LIKE BEING A TENANT IN A RENTAL?

Hell No!  You have to be the change you want to see.  I find myself being much more cognizant of my behavior than when I was just a tenant renting an apartment.   As a landlord living in the same building as the tenant, I feel much more cautious of my presentation outside of my unit.  I'm constantly self aware of my noise level, behavior, presentation, image, time spent home versus away because I'm paying attention to these things of my tenant.  Maybe I'm just sensitive to being a house hacking landlord but it definitely does not feel like being a normal tenant.  There's much more self awareness as an enforcer of the house rules and local ordinances/regulations.  Keep in mind I'm a low maintenance type that just enjoys the freedom of walking out with my sweats and a T to work out and start my day. 

SCREENING

It's not just a rental, it's your primary residence. Take extra care who you choose to be your neighbor. It may be quite different than just a 4 unit Turn Key rental you acquire. This is your home.  Remember that stomping neighbor upstairs or the one who always kept their door open with loud TV blasting while you were a "renter"?  Now the power is in your hands to prevent that from happening again.

MICRO NEIGHBORHOODS

If you are going to house hack, it needs to be in a neighborhood that you would feel comfortable living in.  But lets be real, oftentimes the neighborhoods that we can afford to buy usually is in a rougher neighborhood than the areas we choose to rent.  Those gentrifying areas with bigger upsides are generally the target for many house hackers.  Having house hacked in a class C neighborhood of Cleveland, I realize the importance of micro neighborhoods.  A broad brush can't be swiped over a block by block gentrifying neighborhood.  Sometimes a neighborhood has a really nice block of great residents like you and cool architecture.  If you have a chance to get intimate with the micro-neighborhood that you are planning to call home, it will increase the chances of enjoying the house that you are hacking.  

INTROVERTED vs. EXTROVERTED HOUSE HACKERS

Introverts:  I find that as an introvert, it's easier to maintain that "space" between a landlord and a tenant.  We are less water-cooler type and kinda get to the point.  I find that over-communicating (from an introvert's perspective)  is crucial in maintaining a healthy living environment to be on the same page of expectations.   I know at times I can assume that the tenant read the lease agreement but to be vocal on the restrictions like "no smoking" and "quiet hours" and "common areas" is very important for the quality of life of the residents.  Emails might be a preferred method to communicate for introverts than knock on the door face-to-face.  

Extroverts: Since you are good with the socializing and chit-chat, you can make anything seem non-offensive and tactful.  This can help to create a good relationship with the tenant.  Just keep in mind that this is still a Landlord-Tenant relationship and that your points need to be well communicated and understood amidst the side conversations about the Caveliers and Indians game.  :P

LEASE AGREEMENTS

There are many generic lease agreements out there but make sure to include items that are specific to your property!  In Cleveland we have a lot of doubles with shared porches as an entrance.  Make sure to spell out how folks behave on the porch.  If you don't fancy coming to your home welcomed by topless folks, Budweiser and cigarettes on the porch, make sure to set rules for the common areas.  

AGE IS NOT JUST A NUMBER

House Hackers in their 20s

Young bright eyed and bushy tailed, just do it.  Dorms in college, hostels when traveling, you're used to shared living. Understand that there are tenants from many walks of life and it's important to respect common house rules per the lease and local ordinances.  Playing video games until 2am and going out on the weekends might not be their cup of tea lol (sarcasm).  The lease agreement is your bible, just ensure everything adheres to it.  

House Hackers in their 30s + 

Our space and privacy is important to us.  We have grown accustomed to a certain way of living and we have higher standards.  However we are less tolerant of things that we don't want.  It may be more challenging because our expectations of our living space is higher at this point.  One thing that I have difficulty with is children noises during play and screaming.  Especially on long plane flights.  This also happens more so in your house hacks.  There may need to be some compromise and understand as a wise 30+ year old, we were all once children but have boundaries on quiet time etc.  

HOME OWNERS INSURANCE or LANDLORD INSURANCE for HOUSE HACKERS

I learned that if you are house hacking, it's your primary residence and you should get Homeowner's Insurance to protect your personal assets.  Also this will allow you to Refinance your primary residence so you can continue to invest and reach your real estate goals.  

CLOSING THOUGHTS

I'm glad I house hacked in my 30s.  I know the ins and outs of my property, neighborhood and tenant pool.  I know the threshold of sound that transmits between walls that can be potentially annoying to future tenants.  I know that my shower gets hotter when the tenant flushes the toilet.  Is house hacking right for me?  Well, I play the violin, I do woodworking, I value my sleep, privacy and freedom.  For me it's a short term learning experience in which I can use for my next project to help me reach my real estate goals.  It's not my preferred living experience in my 30s but I'm looking at the bigger picture.  

Would you house hack? If you are house hacking, share with me your experiences.  If you are thinking about house hacking, share with me your concerns.