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Updated almost 2 years ago, 03/08/2023
Cash Flow on House Hack
Hi BP community! I'm looking for some guidance on house hacking.
Background:
I'm in the DFW area and preapproved for 300k at 7.25%. The houses in my area that could work (3bd 2ba) are at the bottom of the market around the 260k-280k range. Putting 20k down, my expected housing payments are going to be around $2400 a month. I'm estimating $1800 in rental income from three roommates so I will be paying ~600 a month. I am currently paying $600 a month in my current apartment.
Question:
With current interest rates, I am not able to lower my housing payment below what I currently pay in rent. However, I am able to get myself into a house where I will be able to pay rent back to myself and build equity, likely appreciation, landlord experience, and increase my quality of living. Does this count as a house-hacking win?
I know most people try to lower their housing payments to below what they would pay in rent but that's not going to be possible in my case. Also, I do not expect I will be able to have positive cash flow after moving out unless rents in my area increase and/or interest rates fall.
Thank you very much for any responses! Please let me know if you'd like any other details.