First Investment - House Hack - HELP

[Cody Godfrey]

I need some advise from other experienced investors that might’ve started their investing career with house hacking.

My wife and I are close to agreeing on getting a duplex under contract in a good market. We would live in the smaller of the two sides and rent the other side out for 1000 a month. It’s a 2 bed 1 bath that could pretty easily be converted to a 3 bed 2 bath unit and rent for around 1400. The side we would be living in is a 2 bed 1 bath with a finished basement and could rent for 950-975. The purchase price would be $212,000 and the seller would be paying 3% of closing costs.

My question is, obviously at that price this isn't a property that we will cash flow on while living there but, we would gain landlord experience and live cheaper than renting. I calculated roughly sending 800-900 per month after all expenses such as all utilities, PITI, repairs, etc.

Is it worth losing a little money each month to live in a nice house that we actually own as opposed to renting? We would obviously live cheaper than renting somewhere.

Also, upon us moving out of the duplex I estimated we could cash flow anywhere from 200-600 per month depending on if I kept a two bedroom or converted it to three.

Any input is greatly appreciated!!!

[Noah Scott]

@Cody Godfrey it sounds like you're making the right move going towards the duplex. Think of it this way: The money you are paying, you would still be paying otherwise, correct? Now it is going towards somewhere you are building equity. Additionally, someone else is helping you build that equity...that's a win. Now, if you've run the numbers like you said, upon moving out you will be profiting 2-600/mo? That sounds like a great play. It may not be the "rockstar" deal we all hope to land on our first-go; however, it seems like the general consensus is that getting your foot in the door is the hardest part, and once you get 1 deal under your belt you are poised to do more. 

Just make sure you run the numbers diligently and you'll be in good shape!

Congrats on taking steps towards making it happen man! I'm following right behind you!