Purchase House Hack?

[Gery Teague]

I'm looking at purchasing a house that can be turned into a duplex. The area that it's available in is very expensive. The investors I talk to don't purchase for cash flow there and instead use it to realize appreciation. There are almost no multi-family available and this could be used a short term rental too b/c of the high vacation numbers in this area (resort town).

Monthly Principle & Interest = $2000
Monthly Taxes & Insurance = $800

Monthly Long Term Rental = $1250
or
Monthly Short Term Rental = $2000+

While we live in it... Purchase or not?
Also, this would free up another rental of ours to bring in another $1500/mo

Thank you for your help!
Gery

[Charles Renn]

Hi @Gery Teague, from what you've laid out, the numbers might add up as a househack. Not knowing the location, I'd ask myself a couple questions if you haven't already.

How long am I going to live in one of the units?

How much will the unit I live in rent for once I move out? Total rent for both units once I move out?

Like you were saying, there are properties that may not cash flow, but appreciate over time. 

Last, I'd count on long term rental income in your numbers, and only use short term rental as icing on the cake. Many cities/counties are fluid in their outlook on the STR market.

Hope this helps!