House hacking in HCOL

[Taylor Alseth]

Hey everyone!

So I am looking to move to Calgary, Alberta within next two-three years. I am definitely looking to purchase my first home and house hack it. Real estate is very expensive in Calgary. I am looking for general advice for house hacking in HCOL areas. Any advice that would be helpful? 

[Jon Schwartz]

Originally posted by @Taylor Alseth:

Hey everyone!

So I am looking to move to Calgary, Alberta within next two-three years. I am definitely looking to purchase my first home and house hack it. Real estate is very expensive in Calgary. I am looking for general advice for house hacking in HCOL areas. Any advice that would be helpful? 

Taylor, I'm househacking a duplex about four blocks from this SFR listing:

https://www.redfin.com/CA/Los-Angeles/201-S-Plymouth-Blvd-90004/home/7096031

So, definitely a HCOL!

My biggest piece of advice would be to look at the holistic value of your purchase. Don't expect cashflow, but do expect to live for less than your neighbors and watch your equity grow.

To get specific, my tenants pay $4975/month for the downstairs unit. We live upstairs in a nicer unit, and our monthly outlay is about $4000. So already we're ahead for this neighborhood. On top of that, I'm getting about $2100/month in principal paydown -- so my "net net" monthly cost is more like $1900. And my duplex is appreciating at the same nice clip as all the SFRs surrounding me! I feel like I've cheated my way into this beautiful neighborhood!

Good luck!

Best,

Jon