Is Bigger Pockets RUNING the ability to househack?

[Meghan McCallum]

Hey everyone,

I have a friend who I have been looking to partner with in a three or four flat in Chicago. Cap rate in the areas we wanted to buy are so bad (1 or 2%), even for the add value plays (which I think in Chicago is a tough play right now with everything hyper-inflated from the dollar to the prices of property). She spent last weekend touring different properties for consideration and at every open house she listened to people talking about BP and "househacking". 

Now, I find it hard to think that all of those people considering house hacking these properties had done their homework when making offers as we are seeing properties go above asking prices again.

Now, if the numbers aren't working for me as a savvy investor whose play is to buy a four flat and keep one unit to airbnb/my friend and I to use when we come into the city, I have to wonder if all these house hackers are really considering what a swift economic downturn will do to their ability to keep the building. Also, does anyone think these amateur MF house hackers are putting the properties in an LLC to protect themselves in such an event? Like I said, with CAP rates at 1 or 2 and prices of these buildings near or above $1M, are lightly educated investors following a term well appreciated by people who truly understand investing?

I look at the number of "pro" members vs free members and it makes me think most people are hearing a trendy word, a quick start, and haven't put the time into educating themselves.

I hope I'm a jerk, and I'm wrong for asking. But, real estate investing has become so trendy again, thanks to BP and podcasts about it, I just worry people are investing very little into their education on the subject and too much on properties where the numbers don't make much sense.