4-Plex in Great condition

[Brock Hoffman]

Hi everyone!

I am looking at a 4-plex in Jackson, MI that is in very good condition. There is also very little area to apply forced appreciation. All the units are rented and it seems like a very nice property to house hack in. Depending on how the numbers play out, do you think this would be a good investment, or should I be looking for something that I can rehab and increase appreciation? 

Also, I am a new investor!

[Billie Miller]

Hi Brock,

It's hard to say without looking at your numbers. Lots of people thing that in order to house hack you have to put in a lot of sweat equity. That's not entirely true. 

It is one of the benefits, but there are many more. I think the best benefit to house hacking is getting to buy a rental with owner occupied financing. It's the cheapest money you can get right now, so it's good to lock in those low rates over 30 years. It's also great if your personal living situation isn't permanent. You can buy a rental and your house at the same time, so to speak.

If the numbers work for you without having to force appreciation, than I would definitely consider it.

However, if all the units are rented out currently, how are you going to house hack it? Are some of the tenants moving out soon?