FHA House Hack or Invest Long Distance

[Cody Whitten]

Hi All,

Recent college grad here who is looking to buy and hold a small multifamily, cash flow property. I have about $15K I'm able to invest, and am torn between house hacking on an FHA loan near me (New England) or going 25% down in a much cheaper market long distance. I'm currently living at home and am looking to move out so I'm leaning toward house hacking but the PMI makes me hesitant.

Any thoughts BP?

[Ali Boone]

Well the PMI definitely should make you hesitant. But don't guess whether you should be hesitant from it or not, just run the numbers. If you aren't familiar with running numbers on rentals, check out-

https://www.biggerpockets.com/renewsblog/2013/01/1...

I'd say run them for both scenarios and see what they are looking like. And then for house-hacking specifically-

https://www.biggerpockets.com/renewsblog/considera...