Should I House Hack?

[Haley Graham]

Hello Again! Excuse the in-depth (with numbers) type of question, but I think that the best start for me is to house hack a duplex. That being said, I found one in a smaller town in Iowa, called Hudson. It is a beautiful little, safe town that seems to be growing just a bit. I found a duplex that's been on the market for about 2 months listed at 104K and dropping. It's 1440 sq ft, 2BD, 1BA each unit. The taxes are around 1680/year, and I'm going to guess insurance would be 30-40 a month (realtor.com estimate plus some). I know its septic sewer and it says rural water? I couldn't give good estimates for those yet, what they run, but just think small town. I'd be living in one side and using a VA loan so I'd put 0% down at 3.75 rate and VA fees (unsure of those yet either). Could I low-ball an offer and eventually make some good cash flow as soon as I can move out? I haven't been to see it yet (which I definitely will- don't worry), but it has some minor updates and there's a two stall garage. I'd be property manager for the year I am there, but I still will want to factor that into my return... Sound like a good deal or not?

[Chase Keller]

Hey @Haley Graham,

I think you’re on the right track. House hacking is an amazing way to get started. You typically don’t Cashflow while you’re living there, but the savings can be fantastic, which can make it possible to save up that money for the next rental property. And you’ll learn a bit about the business while having a pretty secure investment. 

Hudson is a nice little town too. Don’t expect much appreciation, but there’s not much fear of values going down either. 

Let me know if there’s anything I can do to help. Good luck!