First time home buyer (House Hack)

[Adolfo Herrera]

Hello everyone! It's finally here the moment where I actually have enough to buy a nice home and be able to house hack...potentially! 

I'm struggling to decide what a good option for me is, and would like someone's opinion. I have been pre-approved, and I believe I have a pretty good budget to work with. The issue I'm facing is that house prices in the areas that I have been looking for are right at the edge of the total loan amount I qualify for. Would it be a good idea to go utilize almost all of the amount I qualify for? 

Truthfully, If it was just me living in the house I would be able to "survive" paying it off my myself, but I think I would really be gambling it lol, but once I get roommates it should be fine. FYI, I don't really have any other expense or debt besides my car. Any input would be appreciated please and thank you!!

[James Carlson]

@Adolfo Herrera

Man, that's a tough question and one that a lot of people face in the Denver market. The answer depends on your risk tolerance. 

That said, I have a couple thoughts:

1. Your proposed mortgage sounds pretty high. Are you VA? Putting 0% down? My rough numbers show that if you're buying a $600,000 house with even 5% down and at a 4.5% interest rate, your payment should be more like $3,500-$3,600/mo

2. There are so many people looking for room rentals that house hacking in Denver is a pretty secure proposition. You'll fill your space pretty quickly. You should be able to get $850-$950/room. If you find a place that has a little basement area with the basement bedrooms, you can sometimes charge more if they have their "own space," so to speak. 

3. Also, you could do a hybrid. Find a 4br place with a separate entrance to the basement. You take a roommate upstairs and then Airbnb the downstairs. Depending on how nice you do it, you can get $2,000/month for even a 1br downstairs short-term rental in the Denver metro.

Whatever you decide, I wish you luck!