Is Househacking worth it?

[Brandon F.]

Is House hacking worth it? Getting an FHA loan on 3.5% down with an interest rate of 3.5%, usually shows a cash flow below $500. I did some calculations and with a $450,000 Fourplex, and a rent collection of $3,458, you can expect to pay $3,657 in mortgage, leaving you in the negatives. Once you move out of the property you could expect to earn $821 with the added rent from the unit you were living in. Is it worth it to do all the work for this little amount of profit? Or will it pay off in the long run?

[Joseph Cacciapaglia]

It sounds like you're only looking at cash flow, which in my opinion is a big mistake. If you look at how much your mortgage is being paid down each month, and consider the additional appreciation from a larger property, then you're usually much better off house hacking, even if you have to pay something every month to make it work. Even if you paid the same amount that you would be for rent somewhere else, you should be much better off in the long run with a house hack.