Middle Tennessee House Hacking Market

Middle Tennessee House Hacking Market

Mount Juliet, TN · Member since 2020 · 7 posts · 3 votes

Hi, I'm currently looking to purchase my first property and house hack in the middle Tennessee area (Smyrna/Murfreesboro) but am running into some problems. I'm open to SFH and multifamily, but in the middle Tennessee market for multifamily, it is tough to find anything even remotely close to a deal. Most of the deals I am analyzing are single family homes - 3bed 2+baths.

Like I said I'm looking to live in one and have roommates who pay rent to cover some or all of the mortgage. The problem I'm running into is that although when living in the property, I'd be able to pay less for my mortgage than I am currently paying for my rent in Mt. Juliet (assuming all other rooms are rented out), I am having trouble finding properties that will cash flow when I move out in a year or two. My goal is to house hack a property every few years, but if a property won't cash flow after I move out, it wouldn't make sense to do so, right?

I'm wondering if anyone is seeing the same thing in the middle Tennessee market, and if so, does anyone have any advice? I don't want to rush into purchasing a property if it won't make sense down the road, but I am also tired of renting and would rather put my money into my own property and build up equity.

Any help would be greatly appreciated. Thanks!

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  • Matthew BrillPro Member
    Investor · Boca Raton, FL · Member since 2015 · 234 posts · 103 votes
    5y

    If it doesn't produce positive cash flow when fully tenant occupied then I would be very hesitant to move on it. That can be the problem when do the SFH house hack, when going from renting by the room to renting the entire house you may get less gross rents. You can look to keep renting out by the room (like to college kids) or STR to boost income. Other wise just have to be patient. And maybe start looking at more 2-4 unit deals.

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