Why house hacking still makes sense in todays market

[Alan Asriants]

Whether the interest rates are 3% or 7%, those who are renting are still losing in todays market. I personally believe that all first time home buyers should get into house hacking. Using FHA, paying only 3.5% down with potential of up to 6% in sellers assist. You can get into a duplex for pretty much what it would cost you to pay your first, last and security deposit. But the beauty is… you own it! Yes, with these rates you are definitely not "cash flowing" and I believe that ship has sailed, but if you are renting out the other unit and it is costing you the same, or less than to rent something similar, you are in the green. Don't forget, tax benefits! Depreciating your 400,000 duplex in Philadelphia allows you to write off over 12k a year for the next 27.5 years. Did a repair? Write it off. Did a renovation? Write it off. Of course when looking at a deal make sure you are aware of any major capital expenditures (roof, siding, windows, major Reno, etc).

Hope this helps!