House hacking vs Renting

[Frank Macias]

Hello BP members!

What would you do if you were in my shoes?

We wanted to purchase a duplex and do the house hacking idea but what if we bought a duplex and rented somewhere else?

By us renting another apartment we could live in any part of the city we wanted and we would not have to live next door to our tenants. On the other hand we would have to put 20% down - which is possible for us it would just take a little longer (a few months) to save that much.

For apples to apples comparison let's say the cost of renting another apartment vs doing an owner occupied duplex broke down to be the same cost per month, which option would you choose? What are some pros and cons you see with each option?

Thanks for your input! I am eager to see what you guys have to say about this. 

[Deep Patel]

Definitely house hack. In the scenario where you are paying the same as renting (although at times if you find the right deal, you will be paying no money), you are at least paying towards an asset and something that is YOURS. In 2003 my dad chose this method on a triplex that was $310k without knowing much other than he’s not going to be paying much of the mortgage. Today that one decision has led him to own a building that is now worth $850k. The power of owning real estate can be great — take advantage of it!