Paying your own rent while househacking

[Matt Bouthet]

Hey Everyone,

I am planning on opening a new bank account for the MF property I plan on househacking with an FHA loan. I have been analyzing the properties with the consideration of living there the first year as well as once I move out and am renting out all units. Ideally I'd like a 3-family (or 4-family if I can find one) that will cashflow with just 2/3 units occupied and me living in the 3rd. The rental income would go towards buying another property in addition to the money I'm saving from my W2 job + side hustles. I want to have enough money saved by the end of year one to househack a 2nd multifamily.

I'm curious to know what other investors out there think about "paying your own rent" to yourself to put more money into that property's funds for any potential expenses and to save for the next property. Or do you think it would be more beneficial to save that money from your unit into your personal savings?

I look forward to hearing what people think!

Matt

[Mike McCarthy]

If you're planning on making REI a part of your life, I like your idea of treating it as a business from the start.

I agree with setting up a separate bank account for the property. It’s up to you if you want to ‘pay into’ it or not. I think it’s a neat way to create your own little savings account that you can build up. It may prompt you to save more and work towards your next investment.

But tax-wise, and technically business-wise, there’s really no difference.