What to expect with cash flow while using house hack method

[Aaron Diehl]

I am trying to get into my first rental by using the house hacking method. In my analysis I am finding it hard that I make a positive cash flow with all expenses included while I am living there. 

My question is should I expect my cash flow to be positive while I live there or should I expect to pay utilities and maybe a little towards rent or should I only accept a deal that makes me some money and has a higher percent cash on cash after I move out?

[Michael Craig]

@Aaron Diehl Good questions. This really depends on your market and the condition of the home. If you are buying a turn key property, I wouldn't expect to have positive cash flow while occupying - subsidized rent, principle pay down, management / RE experience and tax benefits still make a purchase worth while.

When I analyzed my property that I house hacked, I made sure that if I walked away from the property the next day, rent out each unit, the house will cash flow positive. The more units the property has, the more return you are likely to get (I recommend buying a 3 or 4 family home if you will be utilizing an FHA loan).

With that said, purchasing my home was the best financial decision I have made. Keep analyzing deals and you will know which property makes sense to purchase. Lastly, I must have made 15 offers before the offer for my house got accepted. Good Luck