Aspiring real estate investor-house hacking

[Maura Silva]

Hi! I've been saving money for over a year now to have enough for a down payment on a FHA loan. I'm feeling lost as all the multi family homes I've been looking at have a monthly mortage that allow for no cash flow. I want to live in one unit and have the others pay for the mortage. I've been looking mostly at duplex's and it seems like I would have to double the current rent to get even close to the monthly mortgage. Any advice on how to find the right deal that is worth it?

[Scott E.]

The same issue exists in my market. Whether it's a house hack or just buying a rental, deals wont cash flow unless you put a ton of money down (~40%-50%).

Some positives for you buying a house hack now are:

1. You might not cash flow a ton, but you will probably be paying less than if you kept renting

2. You and your tenants will be paying down the principal balance on your loan every month

3. You'll get tax write offs that you don't have currently

4. Over time you will build equity as the property appreciates

5. If/when interest rates come down, you can refinance to lower your monthly payment

6. If/when the home appreciates enough, you can refinance to eliminate the PMI