House Hacking
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hemlane-a9392011949df124ea8ee63be2fb270c9423d6cd446ec67af23c96616e618606.png)
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
![Jose Aguilar's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2470538/1666202109-avatar-josea469.jpg?twic=v1/output=image/crop=1242x1242@0x583/cover=128x128&v=2)
2k monthly mortgage, wheres the cash flow?
Hi, I'll make this brief. I have no assets but am planning a future in real estate. I research occasionally and build scenarios in my head to see how purchasing proprieties will result in cash flow. This most recent situation where I discovered a decent priced multi unit property with 2 units, 1 with 3 bed 2 bath the other 2 bed 2 bath. I used the bigger pockets calculator where it estimated monthly mortgage with taxes and insurance included came out to 2.1k. My question is how would I utilize house hacking with this particular property? How can I live in that property while the tenant pays my mortgage? Property is located in the central valley. Thanks in advanced.
![Jesse Byrer's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/8090/1621348386-avatar-jessebyrer.jpg?twic=v1/output=image/crop=432x432@0x46/cover=128x128&v=2)
@Jose Aguilar house hacking isn't hard to get started. You have to figure out the numbers of the full housing payment (PITI) and then compare it against the rents in the area. If that cash flow makes sense then the next step would be to get Pre-Approved. This allow you to know that you can afford the property as well as get clear on how much cash you need to close as well as your real housing payments. There's plenty of on-line rates published, but many can be deceptive (charging points for lower rates). If you don't have assets keep in mind that you can get a "gift" from a family member to help cover the costs to buy. Would think the return on real estate will be the market right now. FHA offers the lowest down payment at only 3.5% and is very popular. If you qualify for a VA loan that would 0% down if you enough VA entitlement. Other than that Freddie Mac has a Home Possible loan that only requires 5% if you qualify. Long story short... there are many ways to get started with low down payment options. Just have to get clear on what you qualify for before you start shopping!
![Jose Aguilar's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2470538/1666202109-avatar-josea469.jpg?twic=v1/output=image/crop=1242x1242@0x583/cover=128x128&v=2)
Thank you for the response! I see now, I would have to do more research on PITI this is the first I have heard of that acronym (jargon).
![](https://bpimg.biggerpockets.com/no_overlay/uploads/ads/forum_ad/hero_image/919/PM_Finder_-_Forum_Display_1.png?twic=v1/output=image/contain=520x226)
![Caleb Brown's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1160946/1670531762-avatar-calebb57.jpg?twic=v1/output=image/crop=3126x3126@68x0/cover=128x128&v=2)
I would first get pre approved so you have an idea on your monthly payment and closing costs. For this duplex it doesn't sound like the 1 tenant would cover the mortgage. For a house hack that's okay. The benefit is lower living expenses, once you move out positive cashflow and getting your foot in the door of owning real estate.
![Jesse Byrer's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/8090/1621348386-avatar-jessebyrer.jpg?twic=v1/output=image/crop=432x432@0x46/cover=128x128&v=2)
@Jose Aguilar Sorry moving too fast... PITI is Principal, Interest, Taxes and Insurance. It's your full housing payment.
![Patrick Drury's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2057455/1676134824-avatar-patrickd276.jpg?twic=v1/output=image/crop=2871x2871@840x1500/cover=128x128&v=2)
@Jose Aguilar
Some markets may not support having the tenants pay all your mortgage because the prices are too high compared to rents.
-
Real Estate Agent Ohio (#2021001448)
- (614) 412-4565
- https://www.reafcorealestate.com/
- [email protected]
![Jose Aguilar's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2470538/1666202109-avatar-josea469.jpg?twic=v1/output=image/crop=1242x1242@0x583/cover=128x128&v=2)
Quote from @Caleb Brown:
I would first get pre approved so you have an idea on your monthly payment and closing costs. For this duplex it doesn't sound like the 1 tenant would cover the mortgage. For a house hack that's okay. The benefit is lower living expenses, once you move out positive cashflow and getting your foot in the door of owning real estate.
Thank you, this quote broadens my perspective a ton!
![Jose Aguilar's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2470538/1666202109-avatar-josea469.jpg?twic=v1/output=image/crop=1242x1242@0x583/cover=128x128&v=2)
Quote from @Patrick Drury:
@Jose Aguilar
Some markets may not support having the tenants pay all your mortgage because the prices are too high compared to rents.
I see now, its about lowering the cost of living! Thanks