General questions about house hacking

[Nikash Rajeshbabu]

Hey all, 

  I'm giving Brandon Turner's book "Rental Property Investing" a read and just got to the section on house hacking. I've always heard of the model of "buy a duplex, you live in one and rent the other out" a million times but never knew the details that went into it. I'm a third year college student and was wondering if house hacking would be a viable option straight out of college (assuming I have the required funds). Is it a profitable strategy in the market we're experiencing? If anyone is familiar with the New Jersey market is near the shore a good place to house hack? Any help would be appreciated! Thanks all and happy new year! 

[Daniel McDonald]

Hey Nikash, 

It's a completely viable option, one that I definitely recommend. Will it be profitable right away? Maybe, maybe not. It depends on how uncomfortable you're willing to live. For example, if you buy a duplex and rent a unit, and keep the other one to yourself you'll probably still have to cover a chunk of the mortgage. If you buy a SF you may be able to profit by renting out each room or break even. It really depends on your market. 

I'd think of it like this. House hacking is by far the easiest way to get into real estate investing so check that off, you need a place to live, and you're buying an asset. Don't just buy any random property, but take the time to learn and it will be one of the best decisions you ever make.