House Hacking in Irving Park Chicago, IL

[Kenya Mercado]

Hey Everyone. 

I'm looking to get started in real estate investing with a house hack in the Irving Park Chicago neighborhood. There's a property I'm currently looking at that may offer the opportunity to initially pay off the mortgage payment and put aside for capital expenditures, vacancies, and maintenance but probably not any cash flow until some work is done to the property. Does this seem reasonable as an initial house hack investment with little to no experience? What would be a minimal ROI to look at for someone looking to get started without making an initial profit but setting up for further investments?

[Alex Ferraro]

@Kenya Mercado I think it is fine to not cashflow while you're living in the property. If you're living in a place that's much cheaper overall than renting, having the tenants pay down the mortgage, and gaining valuable experience, it's hard to go wrong. I suggest running the numbers for both living in the property and not living in the property. The Straight Up Chicago Investor Podcast has a good House Hacking Calculator that is built for this specific situation, I would definitely check that out as you run your numbers. I think the biggest risk for most house hackers is waiting too long - so don't be afraid to pull the trigger once you feel you're educated enough on the topic.