Losing Money on a House Hack

[Sydney Key]

Hello You All,

I would not say I'm new to the idea of investing, in fact, I've been obsessed for years. However, I am just getting to the point where I feel comfortable enough to put out feelers and begin the process. I am leaning towards a house hacking situation in a college town. Every few days, I'll run the numbers on a few duplexes and triplexes in the area and each time the cashflow is negative. But, is coming out of pocket 360 dollars a month comparable to paying rent? Is it so bad if the outcome is not necessarily income, but a reduction of personal expenses?  

[John Warren]

@Sydney Key I tell clients all the time that house hacking where you can live 100% for free is almost impossible. In my market here in the Chicago burbs, it is common for the owner to have to chip in a few hundred every month while they are living there.  This is especially true if you are using a low down payment loan with very little skin in the game. Instead, consider the property as though you weren't living in it. Does it cash flow once you move out? I consider that a win.