HOUSE HACKING Help or Advice

[Christopher Veljkovic]

Hello BP,  

THE ISSUE: My CoC ROI in a HOUSE HACK is negative.

My plan:  

Is to HOUSE HACK in a Tri-plex, preferably a Four-plex, Multi family. I've been running the number into the rental calculator and I typically find that the Magic number to offer is nowhere close to the seller's asking price. That being said I had enough of the Analysis Paralysis and diving into an overinflated market and buying. BTW I'm not crazy to buy a bad deal but in NJ pickings are very slim in B to C neighborhoods. The issue is that even when I run the numbers with my family and I living there, our cash on cash ROI is negative.

The Money out of MY Pocket: 

Is to cover a small portion of the mortgage and water/sewage. The rest of the money that is budgeted is going into the reserve for CapEx, repairs, vacancy's for couple of years to build the reserve.

My Conclusion:

As long as the majority of my living expenses are paid such as: P&I, taxes, water/sewage, able to save whatever is left over for any repairs and/or CapEx, I should assume that I am House HACKING appropriately for the circumstance?

Just would like to get some thoughts from others.  I have read many times that people have House Hacked and most if not all their expenses were payed.  Are those days are over in this type of market?  Also I would love to hear other House Hackers stories and suggestions on how to possibly do it better or how they could have done it better themselves!

Thank YOU BP Mentors!!!