Living with parents vs. house hacking

[Erik Vik]

Hello BP, I have a scenario that hopefully some folks could contribute their experience, knowledge, and advice towards. In this scenario, a young professional working a good job making a median salary, recently free of college debt, and rapidly beginning to save money, has two options - either live with parents/family very close to work OR pursue a house hack further from work. Now this person lives and works in Denver, CO, in an expensive area to buy, so, almost certainly would not be able to find deals nearby. In order to purchase a good house hack, they most likely would have to look a considerable distance from their work. Meanwhile, family live in the immediate area, so, this person could theoretically live for free with them, and, have a very easy, bike-able commute. This person isn't necessarily tied to the Denver area, and could see themselves moving away if the right opportunities, family reasons, or other circumstances arose. Additionally, they don't have any real issues with living with family.

Would it be best for this person to live with family, aggressively save, and look to purchase real estate at a distance in cheaper, more cash flow-able areas, OR, should this person move into a somewhat local house hack using an FHA loan, and just deal with the longer commute and less desirable part of town? This person would like to build a real estate portfolio consistently throughout their working career, and hopefully, build enough future passive cash flow to retire early, if desired.

Let me know what you guys think. 

-Erik 

[John Warren]

@Erik Vik why not live with family while waiting for a great deal? Most of my clients here in the Chicago suburbs mention how hard it is to find a deal, and yet tons of people are finding good investments. If I were in that position, I would live with family and start saving up until the right opportunity comes along. Use the time to get to know the market intimately and to network with the agents, attorneys, contractors and other investors who will help make you successful down the line.