House Hacking Rent by Room Taxes and Selling House

[Chris Miller]

Hello,

Long story short I bought a home 16 months ago and have rented it out by room. I have only had maybe 3 months where I was profiting above my mortgage at 350 dollars. The rest of the time has mostly been breaking even on the mortgage costs. I am also thinking of selling this home because I will no longer be living there soon and I want to focus on my family. What are the taxes going to be like on the income and is selling this going to be a nightmare?

[Charles Carillo]

@Chris Miller

I feel house hacking is about covering most of your expenses, building equity, and becoming a landlord with a small down payment. I have house hacked multiple properties before and they never really created positive monthly cashflow (with me living there). It usually ended with me breaking even or having to contribute $50-$150 for the month. On the flip side, I was paying down my mortgage by ~$400 a month and I did not have to pay rent.

Selling a property with roommates living there is going to be a potential hurdle. Most buyers do not want roommates living at the property and you most likely will maximize your sale price by selling it vacant.