House Hacking with Small Multi-Family

[Colby Zeller]

I'm currently 21 years old and have just recently got into real estate investing. Throughout the research I've been conducting it seems a good bet for a first investment is too purchase a Duplex, or Tri-plex and to live in a unit yourself. What I would like to know is if this method is a good strategy for my first investment, or if i should take another route ?

[Gerardo Jasso III]

Hey @Colby Zeller, sounds like you did your research, house hacking is the easiest (in my opinion) to maintain with some type of positive cash flow. Renting out the other units to pay off your mortgage is always a great way to start, but I would still consider vacancy and repairs to upkeep the property. I always suggest to live in one unit, rehab the unit for yourself while the others rent out, and when one of the lease ends in another unit move into that one and rehab it again giving your overall property a big boost in appreciation, as long as it follows the market trend. Remember that some markets, even if you rehab it; sometimes that makes it harder to rent out. Know your area and market before you start to endeavor in your first real estate investment! Good Luck!