Looking at Dollar amounts?

[Keith Torsen]

Hey, all.

Long story short, I'm doing what I can to be more financially fit, so i can start investing. I would love to start house hacking in Sacramento, California. Thing is, small multi-family homes are not cheap in this area, dollar amount speaking.

I'm looking for at least a tri-plex, maybe a fourplex, but I dont want to start with a duplex unless I absolutely have to, for personal reasons. But... I can rarely find a decent 3-4 unit home for under $300k.

I feel like I can take my down payment money and buy more houses in markets that are cheaper, dollar amount. I know that's not the only thing that matters, but actively trying to find a deal in such an expensive market is slowly seeming like a losing uphill battle, and it seems like I could go more inland (such as the Midwest, or even my hometown in Arizona), and have my dollars stretch further, as long as the cash flow remains positive. If I move to other markets that I don't live in, I'm fine with a duplex or even single family. I'd just rather house hack in Sac than either move out of the city, or invest from afar.

Is this how I should be looking at it, or should I try to tough it out for the market I really want to be in?

[Brian G.]

@Keith Torsen dude for what it's worth, Sacramento is a strong market like all of northern Ca right now. It may take more time and money out of pocket to land a property there but House Hacking is an ideal way to start in my opinion. Not only is Sacramento a desirable rental market but your chances for appreciation are dramatically higher than going OOS to the popular cash-flow only markets in the Midwest. This magnifies your return over your hold time. I would find the rockstar RE agent in the 2-4 unit space in Sactown and start there. If you occupy a unit, you only need 5% down for a conventional loan. Ideally your tenants pay most/all of the expenses on the property and you live for free or at a greatly reduced rate thus lowering your cost of living. After you satisfy your obligation to live there a year, find another 2-4 unit...rinse and repeat.