House hacking risks

[Max Ortiz]

Hey guys, I have been looking at single family properties with at least 3- 5 bedrooms and 2-3 baths, I have found some great homes that i would like to make a move on but how much am i actually risking investing in a expensive market like Gilroy, Ca. Keep in mind i am not just looking here in my home town but as well in areas around. My main focus is to house hack a property, but my main question i would say is, am i really talking on so much risk house hacking here in my area? 

[Craig Anderson]

I believe House Hacking is the least riskiest of investments. Think about it, if you have the money to buy a 3-5 Bedroom home already and can afford the mortgage, then your risk is minimal because you already have money to cover expenses. The tenants that you get, offset what you would normally pay, so it's a great set-up with less risk than having 2 mortgages to pay for if you lived in a home and rented out a 2nd home when you start this REI journey.

In Gilroy, you will get appreciation, and you should be able to rent out rooms at a good price point.  Just make sure that you have house rules and expectations set up ahead of time.