To house hack or not to house hack

[Abigail Veit]

I am 22 years old, a recent college graduate, and I live with my parents free from the big expenses of rent and groceries. I want to get started in real estate by house-hacking. I have no debt, I’m just funneling my paycheck into savings/mutual funds and I’m pre-approved. I don’t know whether or not I will still be in the Raleigh area in a year from now due to quick promotions offered in my line of work. I want to start real estate investing right away and have $25k ready for a down payment. Should I house hack now with the possibility of having to relocate in 6-12 months and losing my almost expense free lifestyle and ability to save 80% OR buy now, house-hack, furnish a house from scratch, and then start saving up for another down payment to house hack again in a potential new location with an unpredictable timeline. THOUGHTS???

[Matt Moreland]

@Abigail Veit

Hey, Abigail! Just my thoughts here, but I would get started as soon as you can. If you end up getting promoted and have to move as part of the promotion, rent it out completely! I would consider using a low down payment conventional note so you aren't stressing about FHA requirements for occupying it for specified length of time.

It can be hard to come by a good opportunity to house hack, and it only becomes less convenient later on if you get married, start a family, etc. and live a lifestyle less conducive to house hacking so I say go for it now and start building up your portfolio while you’re as young as possible!