Road to House Hack - Moving to Philadelphia

[Geoffrey Vasquez]

Hello,

Would love some opinions/advice.

I currently have 10k saved up and plan on saving another 10k for first home purchase for house hack.

Background on me and new position:

New Account Manager position where I will be traveling for work within surrounding states and work from home Mondays. Base pay $51,300 + potential monthly bonus. Bonus will put me around $65-70k/year. Philadelphia has a city tax of 3.89% which will add  a $150-$200 reduction of pay each month for living in the city. I don't necessarily need to live in the city since I will be driving out to surrounds states and cities. 

I have two options for a place to live. 

1. King of Prussia - Rent is $650 a month utilities will be covered by a guy who will be sleeping on the couch downstairs in the living room (yeah uncomfortable for me as a tenant). Which will share 1 bathroom for 3 people. Owner of town home has his own bath. Looking for at least 8 month lease. About 30 -40 Minutes from Philadelphia. This is a great price for size of room and I will not be paying city tax. Downside is sharing bathroom with 2 other people and somewhat far from the city - not ideal for networking and social life.

2. Point Breeze, Philadelphia - $850/ month utilities included. Safer neighboorhood. Owner will only rent out one room in 3 bedroom home. Has rooftop and room will come with personal bathroom. Total of 2 people living in home in the city. The owner is a older lady around her mid 40's. 3 month lease agreement then month to month. This location is ideal to be able to network with people in the city without having to drive to far when I am home, which is only a few days a week. Downside is that I will need to pay city tax coming out to be $150-200 in taxes.

Living outside of the city of Philadelphia I would be saving around $2,800 in 8 months - which is the time I believe I will be ready to purchase a home to house hack.

Do you think it's best to live outside of the city with no city tax and save those $2,800. Or live in the city with closer access and funner lifestyle.

I appreciate any comments. 

Thanks

[Kevin M.]

Is your employer based in Philly? You may be paying the wage tax whether you live there or not...

If you truly can avoid it- I would make a personal list of pros and cons and rank them. Don’t make a major life decision on $2800 over the next year. Rank all the things that are important to you and do a full analysis. And If you plan on investing in Philly real estate down the line you will have a much better feel for the city if you live here for a year.