House Hacking & The 2% Rule

[Ahmed Ogunbunmi]

Greetings BP! Kicking off my REI journey and as a first timer I'm looking to break into the game through house hacking. Currently, pursuing a triplex in the Philadelphia market that needs a full gut. In applying the 2% rule to the 3 units the deal works great, however, since I am planning on also making this my primary residence and covering the mortgage from the two tenants technically I would not be paying myself rent. With income coming from only 2 units the property ultimately fails the 2% percent test while I'm living there. Is this a good deal worth pursuing? Thanks in advance for the insight!

[David Faulkner]

If you plan on following the 2% rule, then your first investment should be a bullet proof vest. Good luck.