Newbie House Hacking Question

[Zak Leonard]

Hey y'all,

I'm looking to purchase my first house hacking deal later in the year when my lease ends. Should I only be looking for properties that would cash flow when I move out and keep the property as a rental property (and ideally be house hacking another house), or is simply "getting in the game" and living for free and building equity more important? Or does it really just depend on what my goals are? I'm worried I will spend too much time analyzing deals trying to find the "perfect" one and potentially delay when I would be moving. If you think the latter is more important, do you think it makes more sense to try to be a home in a great location to hopefully have some more appreciation? 

Additionally, since I know when my move out date is, how far in advance should I start working with an agent and lender? 

Any advice is appreciated! 

[Andrew Garcia]

Hi @Zak Leonard it really depends on which market you are in. If you are in San Francisco, finding a house hack that you can live in for free is a steal. If you are in Cleveland, it would be hard to find a non-cash-flowing property. 

Your goals are also a huge factor. If your goal is income, finding a cashflowing property is likely more important. If your goal is wealth, a great location is likely more important.

Analysis paralysis is a huge issue. You should certainly analyze each deal thoroughly but today's market rewards decisive action. Make sure your team can work quickly and help you analyze each property.

You should start working with a lender and real estate agent as soon as possible. That way, everyone is aligned and you are prepared when the time for house hunting begins.