Is now not the time to try and house hack?

[Joseph Gisler]

For two years I have been patiently waiting, studying my market, reading about how to invest and building my knowledge base on house hacking for when I graduate college.

Well in May, 2020 I graduated, mid-pandemic and started my job in July. Within the past two years I have saved close to $20,000 to invest in real estate and am more than ready to do just that.

But in my market, the houses are flying off the shelves in a matter of days at full asking price if not more. I’m worried it’s raising the market prices to points that are not sustainable. This virus, in my opinion is not going anywhere anytime soon and if we cannot sustain an economy in it, will this cause a crash that a rookie like myself with limited reserves can’t survive?

My father is an investor and thinks I should wait... but I feel like I have been waiting for so long and I don’t want to wait any longer, I am ready to take the next step.

What is your opinion? Is house hacking still a valid option for a FIRST investment even without a end date of this virus?

[Steve Oswald]

@Joseph Gisler What type of house hacking are you considering?  I think that house hacking is a good way to mitigate risk because you are basically spreading the risk among other tenants.  Now I wouldn't say to buy a deal where the numbers don't work just to get in, but I think house hacking in a property where a portion of your mortgage (or maybe all) is covered allows you to learn hands on, without totally jumping in head first where maybe you have both your personal residence and a rental to worry about in a possible downturn.