How many times can you house hack?

[Leo Don]

Hello BP,

Just wondering how many times can I house hack multi family properties? When will a bank stop giving me loan for OOC property? Please share your experience. I already have a establish relationship with my banker. Just want to hear other experiences. 

I greatly appreciate it !

[David Faulkner]

One every 2 years, which gives you the option to sell tax free (at least up to $250k in gains) after renting it out for 3 years or less, in nicer hoods with sweat equity and market appreciation potential (but maybe not as great cash flow, as long as it is positive), is a good pace and strategy in my opinion for a young hacker. You can focus more on cash flow on pure rentals later in life, but early is the time to go for the capital gains.

My advice is to house hack as many times as you can before you have kids. Kids will tend to limit you well before banks will. Newborns tend to kill house hacking as a strategy ... too bad, really, because it is a really good one. Also, if/when you get married, find a spouse that is frugal and onboard with REI. My wife was more into power tools than jewelry and still trying to lay bathroom tile at 7 months pregnant ... she's a keeper :-) Hopefully by the time you have kids, you'll be ready to graduate to the next step in your REI career anyhow. In the meantime, hack away!