House Hacking Question (Bay Area California)

[Tobias Martinez]

Hey everyone,

I’m in the process of looking for a lender in order to figure out what sort of loan I can get approved for. 

After running numbers for some single family homes within the county I am shopping in (Solano county) I realized that I will most likely have to pay around $500 towards the mortgage each month, even after renting out the rooms...

My question is; is this worth it? My Idea is that I am building equity within this home and can eventually turn it into full house rental with a higher monthly rent. What do you guys think? 

Thanks!

[Benjamin Sulka]

I think that's a great strategy. The purpose of house hacking isn't necessarily to cash flow but rather to boost your savings rate, eliminate most of your living expenses, and start building equity. 

Analyze every property and see what your numbers look like AFTER you move out. Just make sure to account for all expenses above and beyond PITI. Like future property management, capex, vacancy, etc.

All the best!