Renting out rooms in own home vs living in a rental

[Shashank R.]

Hey Everyone,

I live and work in the San Francisco Bay Area.

Houses here are expensive (relative to many other parts of the country) and require significant amounts of capital tied up in a down payment.

I was looking to get pros/cons on:

1) buying a house (condo,sfh), renting out other rooms while living in one of them

2) staying in a rental while deploying capital towards RE investments OOS and locally

In several BP podcasts, and from RE moguls like Grant Cardone, renting is often touted as the better of the two options for an investor. But strategies such as house hacking talk about staying in one part of a house while rehabbing the other. So I’m interested in hearing the experiences and opinions of the BP community.

Thanks!

[Account Closed]

@Shashank R. If you plan to live in the Bay Area long term I would agree with Michael, househacking is a great way to invest & get started in Bay Area. We bought a home with a layout which would enable us to carve out the front portion easily and house hack. I am also building an ADU in the backyard for rental. Many ways you can make it work if you can get creative.