First House Hack

[Jacob Guttman]

My name is Jake and I am looking to purchase my first house hack in a little under a year.

My situation: I graduated college in May 2024 and started a FT position at a public accounting firm in September. I am living with my parents and making enough money to save $1k with each bi-weekly paycheck. With these savings, I plan to enter the market for a single-family house hack in the Baltimore area in Fall 2025. I plan first to ask friends if they would like to live with me (is this a bad idea?). I am looking for any advice I can use to pursue this goal. What can I do in the time being to help me with the decisions to come next Fall? Is Baltimore a good area for a house hack? Should I expect to cash flow from it? Or only cover my mortgage payment?

Any advice or information helps.

[Simon W.]

Hi @Jacob Guttman

Congrats on your job and kudos for planning ahead! House hacking in Baltimore can be a smart move, but there's quite a bit to consider.The Baltimore market varies significantly by neighborhood. Some areas offer great potential for rentals and appreciation, while others may be less favorable. It's crucial to thoroughly research different neighborhoods before making a decision.Regarding cash flow, it's best to set realistic expectations. 

Initially, covering your mortgage is a reasonable goal. If you plan to house hack, I recommend you not to expect any cash flow.

Living with friends can work, but it's important to approach it carefully. If you choose this route, make sure to have clear, written agreements in place and maintain a professional landlord-tenant relationship. This can help prevent potential conflicts down the line.