HOUSE HACK_ ADVICE NEED IT

[Alex Xu]

Hello guys, I’m in the process of buying my first property for HOUSE HACKING in Baltimore Market! Advice needs it, please!! 

The property selling at $315k in Baltimore with a fully renovated basement, new roof, and sewage line, and basement.

Due to my calculations, total monthly expenses come about $2500 including;

-Mortgage, interest, and tax

-The vacancy rate of 8%

-Repair at 5%

- Cap ex at 9%

- Management fee at 5%

My plan is to live in one of the rooms and rent out the other and I have about $20 positive cash flow every month after all the expenses. Live there for 1-2 years and rent it out and maybe sell it within 5 years 

However, I'm worried about the future recession or house crash that the property will depreciate, according to Zillow the area is expecting to deprecate by 4% within the next year, not sure how accurate the data is but that is something worries me.

What other things should i be consider for house hack, this is my first purchase, very new to the game and hope to gain some insights from you guys! Thank you! 

[Tyler Dalton]

Congrats on making moves Jin and trying to tackle your first house hack.

What part of town are you looking to buy?

Most people who deal with house hacks will tell you they are actually more "recession proof" vs the traditional single family model since you have multiple people paying. Your vacancy will probably lower than 8% since you can fill rooms faster.

My partner @Devin Moreno specializes in house hacks and has several in the city. Also, Austin Carroll local realtor who specializes in house hacks and would be the best two resources for you.