House hacking but no cash flow potential

[Antoine Justiz]

Hello Everyone, I am thinking of "house hacking" a 2 or 3 family in the New York/Northern New Jersey area by living in one unit, but the numbers don't work in general for positive cash flow unless it's an area where we wouldn't necessarily want to live. The benefits of house hacking seem to outweigh paying high NYC rents at this point, but if we eventually move out, the investment will likely cash flow negatively. I'm thinking I could then refinance, but rates may be higher then. Is this a good investment anyway? Marc

[Vincent Priore]

@Antoine Justiz @Sung Park,

This is definitely a common issue in the area and I faced the same problem when I house-hacked my first property many years ago.  The only real way around it in the better areas is to add value.  You have to find a property that has clear upside potential by upgrading / adding on, etc.  

These are undoubtedly more difficult to find, but hang in there.  You don't want to find yourself in a different stage of life (married, kids, job relocation, etc) and have to hang onto something that cash flows negatively.  You'll resent your decision.

All the best