House Hacking an Investment Property in Baltimore

[Miranda Mayuiers]

Hello, I have a unique situation. I work for Hopkins and during the pandemic we relocated about 130 miles away. Now that people are going back to the office, I am coming to the city for three days a week. Two hotel nights and parking is costing me $1,175/month. I've been doing this for six weeks and I can't help but feel like I am throwing money away.

I am considering investing in a property in Baltimore and living there part time, renting out the rest of the rooms. This would be considered an investment property as I own my house in my new state. So this would require a chunk of change (20% at least) down plus I would still be an occupant so I couldn't rent out my room.

I am looking at 2+ bedrooms 2+bathrooms in grade A areas like Canton, Fells Point, etc. I am also considering select areas near Hopkins Hospital.

How would you measure success or if this is a good investment given the above? I will be paying over 1K regardless if I continue in hotels, but I also recognize me living there PT cuts down the cash flow. But I would rather own something vs. throw money at a hotel.

[Russell Brazil]

Originally posted by @Miranda Mayuiers:

@Russell Brazil the lender I was working with said I'd have to do 20% as I already have a primary residence and driver's license in VA. I obviously would prefer the 3-3.5% down you and @Ozzy Sirimsi mentioned, who do you go through and is it a special kind of loan? Thanks in advance, I really would like to support growth in Baltimore!

If you are planning to move into the new property, and rent out the old one, there should not be an issue, unless you have only recently purchased the property in Virginia. When buy a house as an owner occupant, you sign an affidavit at closing stating you intend to live in the property for a year. So if your Virginia home has been owned less than a year, then yes that could be an issue.

Reach out to @Upen Patel. He is a top notch lender in the area.