Does it make sense to buy for rental property that doesn't hit 1% rule if I Househack

[Nicholas Whelpley]

I have been listening to the bigger pockets podcasts for a very long time and have been in analysis paralysis for years. I plan to take the risk ASAP and am looking at a rental property that I plan to house hack. I plan to live in the unit for a couple years before moving out and buying another property. The property does not hit the 1% rule currently but I believe with all the continued development in the community that within the next couple years I can raise rent enough to hit the 1% rule. What would you do? it is in Massachusetts so appreciation is there but cashflow has always been lacking. 

[Ryan Muska]

In high cost areas, it may be virtually impossible to cashflow/hit the 1% rule today. However, 5-10yrs down the line, that 1% rule may be very easily attainable. Also, everyone is anticipating much lower rates over the next 12-18months, so if you purchase today you will most likely refinance to a lower rate in the coming few years.

With Real Estate it's important to remember not only that it is a long term investment, but that there are many ways to make money on the asset. Cash flow is only one of them. 

I'd say, if you aren't too far in the negative with the property's expenses and you are able to see growth in the area's future, then go for it and don't get discouraged if you face difficulties in the beginning. Everyone here is still learning, and we all started our journey somewhere.