House hack in California or out-of state

[Reyna Montoya]

Hello,

I am a newbie to REI. I am located in Oxnard, CA and am currently Debating whether to invest in the states (not necessarily Ventura court) or outside the states for our first house hack.

I understand that the first house hack might not be the easiest, but it will definitely help me for the second or third investment. Definitely considering moving if it’s more beneficial for our strategy to house hack.

Advice?

[Jon Schwartz]

Originally posted by @Reyna Montoya:

Hello,

I am a newbie to REI. I am located in Oxnard, CA and am currently Debating whether to invest in the states (not necessarily Ventura court) or outside the states for our first house hack.

I understand that the first house hack might not be the easiest, but it will definitely help me for the second or third investment. Definitely considering moving if it’s more beneficial for our strategy to house hack.

Advice?

Reyna,

Wow, I've never seen somebody ask if they should househack in CA or move out of CA to househack elsewhere. Usually it's a choice between househacking here or living here and investing out-of-state.

I'm a big proponent of househacking in California because we experience really powerful appreciation here. Househacking here isn't an income play; it's a wealth-building play. By lowering your cost of living, improving a property that needs some work, and having your tenant(s) pay down the principal of your loan, your net worth will really climb while you're househacking. The same principle will apply anywhere, but with less appreciation in, say, the Midwest, you'll be losing out on some of the sweet CA equity growth.

I gotta say, choosing where to live is more than just an investment decision. If you want to stay in Oxnard, you should really look into low-down-payment loan programs, especially the NACA program (naca.com) and find a way to make a househack here work. But if you're at a point in your life where you want something new, if you're itching to get out of CA and start a new chapter, then definitely get going! There are plenty of markets that you'll do well in -- it's just a question of where you want to live.

Good luck!

Best,

Jon