Living with parents: BRRRR or House Hack in expensive market

[Justin Yen]

Hello BP!

Due to Corona and my wife’s surgery—we’re currently living with my family in the NJ/NYC area where cost of living is high so we’re able to save in rent. Currently we only have 50-60K saved up.

We've been dying to get into real-estate. And I'm about half way through the BRRRR strategy book. Motivated by the most recent Q&A podcast, my question is should we save up cash for a BRRRR deal on a multi family or should we house hack using an FHA?

Using an FHA on a two family will still run me (mortgage+taxes) 3-4K a month or so—so even renting out the other unit will not cover the mortgage. Unless I can get like a 3 family for that price.

BRRRRing on a multi family and then living in it while renting it out sounds ideal, but again we don’t have the capital to make a cash offer and fund the rehab.

Hoping to take some action soon!

Thanks for your thoughts!

Justin