House hacking: Established vs up and coming neighborhood

[Andy X.]

Hello BP community:

I am a rookie who's looking to do my first house hack with multi family units. I have a family of 3 kids so we need to pick a decent school district which up the purchase price. My question is - would house hacking be better with established neighborhood or up and coming? We are looking to do 3% down, owner occupied for 1 year and move on to the next but needs to stay in the same school district to minimize the impact to our kids when moving from one house to the next. We don't expect to cash flow in the first few years due to school requirement and hot seller market. In this case, would it be better to do house hacking in the established neighborhood because the rental value might be higher (quicker COC) vs up and coming with lower renter but equity build up could be bigger because of lower entry price.

Would appreciate your advice and pointers if I missed anything. Thanks. 

[Nick Brown]

@Andy Xu. Your setting yourself up for a long long drag with little tangible results. You will be asking yourself why are you doing this within 6 months.

It kind of sounds like you banking on the market improving rather than the effort of your house hacking to make it work.

I would suggest you need to rethink your strategy. Your mixing your personal and family life with a business model. They truly don’t mix. There are other strategies in property investment that you could use while maintaining your kids in the same school. And it then does not interfere with your business.

I live in Frisco. If you want to grab a coffee some time I am happy to run through some ideas with you.

Cheers

Nick