Best market to house hack in?

[Kegan Scholl]

-22 years old

-$50,000 pre tax income from business this year

-80k in savings

-30k in investments

-pre approved for $350,000 (had to use parents as co-signers because I started business 2 years ago and didn’t make much first year)

Looking to get into first house by house hacking a 4 bed 2 bath renting out 3 rooms. Preferably stay for one year and find another house. Ideally want to break even or cash flow with the 3 tenants.

Now question is this: I was wanting to buy in Tampa, FL. I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by. So is there better markets to buy in (in big cities)? Or can I find something in Tampa? I’ve been interested in TX, AZ, UT, NC or anywhere in FL.

Also any advice for me is appreciated (save up more, focus on business instead, etc)

Any more info you need comment below! Thanks for advice.

[Ben Trageser]

First thing you need to think about is where you want to live geographically. Do any of these locations make sense to you? Visit, explore these place and then narrow it down. Once you narrow down your markets, you can keep an eye on the markets and become attuned to them. You'll end up finding a deal and going from there. You can also live somewhere and invest out of state if the deals don't make sense. You do not want to force something.

[Josh Green]

Quote from @Kegan Scholl:

-22 years old

-$50,000 pre tax income from business this year

-80k in savings

-30k in investments

-pre approved for $350,000 (had to use parents as co-signers because I started business 2 years ago and didn’t make much first year)

Looking to get into first house by house hacking a 4 bed 2 bath renting out 3 rooms. Preferably stay for one year and find another house. Ideally want to break even or cash flow with the 3 tenants.

Now question is this: I was wanting to buy in Tampa, FL. I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by. So is there better markets to buy in (in big cities)? Or can I find something in Tampa? I’ve been interested in TX, AZ, UT, NC or anywhere in FL.

Also any advice for me is appreciated (save up more, focus on business instead, etc)

Any more info you need comment below! Thanks for advice.

 I started with two house-hacks in Utah actually then moved here to the Tampa Bay market and continued house-hacking.  I've helped dozens of people house-hack here.  All those states' metros are going to have a relatively tough time "cash flowing" with minimum down and standard LTR.  Without adding creativity like: room by room renting/padsplit, value add/larger cash down, mid-term or short term renting, etc it's just how things are.  

I love house-hacking for Tampa Bay for a few main reasons: 1) great long-term outlook on appreciation; fundamentally strong market and growth projections, 2) diverse opportunities of house-hacks from luxury house hacks, cheap house hacks, room by room, STR, MTR, etc. You can really pick where you want to be on the "comfortability to profitability" scale here where I felt like those options in most markets were limited. 3) it's a great place to live all-around. The lifestyle, weather, etc are perfect for me and I'm so grateful to be living here!

As for insurance and all that, most of what you're hearing is media noise and really not accurate/blown out of proportion.  The state has always had many hurricanes and while insurance here is higher than the national average, our housing price to amenities ratio is one of the highest around.  The myth that you "can't get insurance" is absolutely wild.  I've never had a client not be able to get a great competitive premium on a property here and we've bought all kinds of property.  Property tax isn't cheap but it's not like TX high and Illinois and NJ etc.  Utah has some of the cheapest tax and insurance rates, but their rent to price ratio is horrible and rents don't keep up with housing increases like they do here.  We also don't have state-income tax, so the more you make the better the benefit of living here is.  

Kudos you've saved and put yourself in a good position to start out on the right foot by house-hacking.  5 years ago my wife and I bought our first and now we have 9 units and have really scaled our passive income stream through those rentals.  STRs specifically have supercharged our passive income goals and cut down our initial goal of a 10 yr run to get where we want to be in half.  I personally house-hack still with a guest house on my property that I short-term rent and I highly recommend it.  You can even "pay yourself" the cleaning fee if you want to and do the turnovers yourself.  Not a bad side hustle - spending a few hours mostly doing some laundry and cleaning up and paying yourself a few hundred a month to do it!  We don't do that anymore of course but it's something I did early on when it was worth the time!

[Bonnie Low]

The "best market" is less about the market per se and more about the deal you're able to find in my opinion. You could be in an expensive market, like LA, but you inherited a property or you got a killer wholesale deal or subject to and the numbers could be very attractive compared to buying off the MLS for full market price in the same market. There are markets that have built in "gotchas" like the rising cost of insurance in coastal FL, regulations in much of the west coast states and property taxes in Texas; however, the deal itself is the most critical factor.

[Tatum Littleton]

The point has been made but I'll say it again, where to house hack? Where do you want to be? It seems you would be most comfortable in Florida but if you're willing to move to other states, I would get out there if possible and talk to as many different people as you can with as many different opinions to get different takes. Take that information and see what might work best for you right now in this position in life.

House hacking is an awesome way to get started and even doing that can still be a bit difficult to cash flow today so run your numbers multiple times and do them well. Even if you are not cash flowing on day one, that's okay (in my opinion), you're not paying the full mortgage on your own, which in of itself is a huge win and you learn other tangible real estate investing skills along the way by simply owning. 

I think if you can juggle managing the property on your own and taking care of your business this seems like a no brainer but I hope you don't get caught in a rut because it doesn't seem like it's working or something else... it's a marathon, not a sprint! It looks like you've taken more steps than some, so, keep learning and planning your next moves!

I'm in Texas and would be happy to talk with you about different markets! Good luck, keep it up!

[Nick Velez]

@Kegan Scholl

I am partial to Florida given I live here but I have house hacked for the past 6 years and it fundamentally changed my life, you are on a great path for success. Tampa has amazing growth potential and have personally witnessed @Josh Green work miracles for his clients. If Tampa is on your radar, I HIGHLY suggest you connect with him. 

[Laura Shinkle]

I second and third all the comments above. Househacking is different from regular REI because you will need to live in the home. Living somewhere that you hate will make for a miserable real estate journey and you'll not want to continue. So...where do you want to live?

I'm also assuming (which I may be assuming incorrectly) that your job is in Tampa and you don't work remotely. That means that if you move to another area, your income could potentially change (up or down, who knows). That'll affect your pre approval and ability to buy. 

I'm sure there are areas around Tampa and maybe suburbs that are more affordable than others. Check those out first. If you find that there's nothing that you like or would be willing to live in with your budget and location, AND you had the flexibility of being able to move and keep your job or you're willing to job hunt in different states, THEN explore different areas. But as I've said, focus on your happiness in living in that location first, then look at the real estate market and make sure it works for you. Good luck!

[Jackson Harris]

First off, great job on the savings and having a gameplan of what you want to do at your age! I am biased because I live here but Phoenix is a great market, it gets ranked #1 for investing all the time and it shows. 

House hacking I think is the best way to scale quickly and save money if you're willing to have roommates. There are multiple big properties here that you could rent out or even buying multifamily here would give you your own space and give you some landlord experience without having to live with your tenants. 

I also have a lender that has a loan product that will allow you to put $0 down on a home with an ADU that would add another rentable space to get income from. I'd love to connect, feel free to reach out to me for a call!

[Jake Andronico]

@Kegan Scholl

Awesome strategy!! I've done this twice in Reno, NV and it's changed my life. 

Where would you like to live? It's a big decision, and I recommend spending some solid time in each area. Getting an Airbnb and going to different spots to check things out. 

Also, what's the nature of your business? Would there be a certain area that may impact the business positively or negatively? 

Having cash reserves AND income in case something comes up is incredibly important. 

[Kegan Scholl]

Quote from @Ben Trageser:

First thing you need to think about is where you want to live geographically. Do any of these locations make sense to you? Visit, explore these place and then narrow it down. Once you narrow down your markets, you can keep an eye on the markets and become attuned to them. You'll end up finding a deal and going from there. You can also live somewhere and invest out of state if the deals don't make sense. You do not want to force something.

 I'm from Minnesota and I have a video editing business where I can work from anywhere. I've lived in AZ and loved it and been to florida many times and liked Tampa. Never been to Texas so would have to visit there and Utah seems pretty expensive compared to the other 3. Thanks for the advice!

[Kegan Scholl]

Quote from @Bonnie Low:

The "best market" is less about the market per se and more about the deal you're able to find in my opinion. You could be in an expensive market, like LA, but you inherited a property or you got a killer wholesale deal or subject to and the numbers could be very attractive compared to buying off the MLS for full market price in the same market. There are markets that have built in "gotchas" like the rising cost of insurance in coastal FL, regulations in much of the west coast states and property taxes in Texas; however, the deal itself is the most critical factor.

 Thank you this is great info!

[Kegan Scholl]

Quote from @Tatum Littleton:

The point has been made but I'll say it again, where to house hack? Where do you want to be? It seems you would be most comfortable in Florida but if you're willing to move to other states, I would get out there if possible and talk to as many different people as you can with as many different opinions to get different takes. Take that information and see what might work best for you right now in this position in life.

House hacking is an awesome way to get started and even doing that can still be a bit difficult to cash flow today so run your numbers multiple times and do them well. Even if you are not cash flowing on day one, that's okay (in my opinion), you're not paying the full mortgage on your own, which in of itself is a huge win and you learn other tangible real estate investing skills along the way by simply owning. 

I think if you can juggle managing the property on your own and taking care of your business this seems like a no brainer but I hope you don't get caught in a rut because it doesn't seem like it's working or something else... it's a marathon, not a sprint! It looks like you've taken more steps than some, so, keep learning and planning your next moves!

I'm in Texas and would be happy to talk with you about different markets! Good luck, keep it up!

 Ya I've definitely been frustrated with just finding the right market let alone deal. Especially cause it seems like it's been getting harder to cash flow and I'm a bit worried about that. but I definitely gotta be happy even if im not cash flowing day one like you said because at least im not paying a lot of rent. thanks for the advice! 

[Kegan Scholl]

Quote from @Nick Velez:

@Kegan Scholl

I am partial to Florida given I live here but I have house hacked for the past 6 years and it fundamentally changed my life, you are on a great path for success. Tampa has amazing growth potential and have personally witnessed @Josh Green work miracles for his clients. If Tampa is on your radar, I HIGHLY suggest you connect with him. 

 Thanks! I just connected with him.

[Kegan Scholl]

Quote from @Laura Shinkle:

I second and third all the comments above. Househacking is different from regular REI because you will need to live in the home. Living somewhere that you hate will make for a miserable real estate journey and you'll not want to continue. So...where do you want to live?

I'm also assuming (which I may be assuming incorrectly) that your job is in Tampa and you don't work remotely. That means that if you move to another area, your income could potentially change (up or down, who knows). That'll affect your pre approval and ability to buy. 

I'm sure there are areas around Tampa and maybe suburbs that are more affordable than others. Check those out first. If you find that there's nothing that you like or would be willing to live in with your budget and location, AND you had the flexibility of being able to move and keep your job or you're willing to job hunt in different states, THEN explore different areas. But as I've said, focus on your happiness in living in that location first, then look at the real estate market and make sure it works for you. Good luck!

 I have a video editing business where I can work from anywhere so that's why i have so many states as options. I'm in Minnesota right now. Thanks for the advice!

[Kegan Scholl]

Quote from @Jake Andronico:

@Kegan Scholl

Awesome strategy!! I've done this twice in Reno, NV and it's changed my life. 

Where would you like to live? It's a big decision, and I recommend spending some solid time in each area. Getting an Airbnb and going to different spots to check things out. 

Also, what's the nature of your business? Would there be a certain area that may impact the business positively or negatively? 

Having cash reserves AND income in case something comes up is incredibly important. 

 thanks for the advice! I live in Minnesota but have a video editing business online so I can go anywhere and there wouldn't be positives or negatives to any. 

[Laura Shinkle]

Quote from @Kegan Scholl:

Quote from @Ben Trageser:

First thing you need to think about is where you want to live geographically. Do any of these locations make sense to you? Visit, explore these place and then narrow it down. Once you narrow down your markets, you can keep an eye on the markets and become attuned to them. You'll end up finding a deal and going from there. You can also live somewhere and invest out of state if the deals don't make sense. You do not want to force something.

 I'm from Minnesota and I have a video editing business where I can work from anywhere. I've lived in AZ and loved it and been to florida many times and liked Tampa. Never been to Texas so would have to visit there and Utah seems pretty expensive compared to the other 3. Thanks for the advice!

 That's awesome that you have that flexibility! If that's the case, check out some of the economic data about what cities have strong job and population growth. Since you have flexibility with locations, you have your pick of cities that are growing, but also affordable. I've also had clients look into different Facebook groups that they can find about moving to a certain area and learn that way. 

[Jorge Vazquez]

I hacked my first 6 homes before "house hacking" was even a thing! I always invested in the "higher end of the lower end," starting small and working my way up so the banks had no issues financing my next property. After 20 years in real estate (before DSCR loans were even around), here's my take: Tampa and Central Florida are gold mines if you play it smart. Yes, taxes and insurance are higher, but Tampa has strong rental demand, and you can still find properties in growing areas just outside the city where cash flow is realistic. Consider places like Riverview, Brandon, or even Lakeland—these spots have great growth potential without the premium Tampa prices. House hacking in a 4-bedroom here could absolutely work if you run your numbers carefully and stick to those "higher-end lower-end" neighborhoods. Focus on covering your costs and saving, and you'll be ready for your next move in no time. You're already ahead of the game—stick with Central Florida, and you'll crush it!

[Austin Wolff]

Hey Kegan, I published on article on BiggerPockets specifically to answer this question for people like you (and selfishly for myself):

The 10 Best Markets for Your First House Hack

None of the states you mentioned are on this list, however. After picking up my life in Los Angeles and moving to Fayetteville, AR for a house-hack, I do have a word of wisdom: make sure you like the place you're going to live if you're moving across the country to start your real estate investing journey. House-hacking will be uncomfortable, and that discomfort is multiplied when you live in an unfamiliar place. In my opinion, if you really like one state more than another, try to make the house-hacking work there. If the numbers don't seem to make sense, consider a cheaper (but still growing market) or just keep saving until you can do out-of-state investing.

[Jesse Rivera]

Quote from @Austin Wolff:

Hey Kegan, I published on article on BiggerPockets specifically to answer this question for people like you (and selfishly for myself):

The 10 Best Markets for Your First House Hack

None of the states you mentioned are on this list, however. After picking up my life in Los Angeles and moving to Fayetteville, AR for a house-hack, I do have a word of wisdom: make sure you like the place you're going to live if you're moving across the country to start your real estate investing journey. House-hacking will be uncomfortable, and that discomfort is multiplied when you live in an unfamiliar place. In my opinion, if you really like one state more than another, try to make the house-hacking work there. If the numbers don't seem to make sense, consider a cheaper (but still growing market) or just keep saving until you can do out-of-state investing.

 LA to AR. that is a big culture shift. How do you like it?

[Harrison Gaunt]

Hey Keegan! Congrats on being in this spot at 22. Not many people are buying houses this young so very impressive. I'm 22 as well and just got my license 4 months ago. I work for a wholesaling team in Phoenix, so if you're interested in seeing what's out there in AZ I'd love to connect!

[Jake Andronico]

Quote from @Kegan Scholl:

Quote from @Jake Andronico:

@Kegan Scholl

Awesome strategy!! I've done this twice in Reno, NV and it's changed my life. 

Where would you like to live? It's a big decision, and I recommend spending some solid time in each area. Getting an Airbnb and going to different spots to check things out. 

Also, what's the nature of your business? Would there be a certain area that may impact the business positively or negatively? 

Having cash reserves AND income in case something comes up is incredibly important. 

 thanks for the advice! I live in Minnesota but have a video editing business online so I can go anywhere and there wouldn't be positives or negatives to any. 

Super cool!! You're in an amazing spot. Your opportunity is also what's difficult, having virtually unlimited options :) 

[Rick Albert]

You can make it work pretty much everywhere, you just have to get a little more creative.

I know the dream is to only live there for a year, but with putting so little down, most properties right now aren't cash flowing enough. Think about it, if the numbers work at 3.5% down, why wouldn't an investor putting 20% down just buy it?

I would be focusing on adding value into the homes you are looking at. I'm not talking about cosmetic fixes, I'm talking adding bedrooms within an existing floor plan, creating a second unit (like an ADU), etc. That's where you will gain in cash flow.

[Xavien Rafael]

Quote from @Kegan Scholl:

-22 years old

-$50,000 pre tax income from business this year

-80k in savings

-30k in investments

-pre approved for $350,000 (had to use parents as co-signers because I started business 2 years ago and didn’t make much first year)

Looking to get into first house by house hacking a 4 bed 2 bath renting out 3 rooms. Preferably stay for one year and find another house. Ideally want to break even or cash flow with the 3 tenants.

Now question is this: I was wanting to buy in Tampa, FL. I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by. So is there better markets to buy in (in big cities)? Or can I find something in Tampa? I’ve been interested in TX, AZ, UT, NC or anywhere in FL.

Also any advice for me is appreciated (save up more, focus on business instead, etc)

Any more info you need comment below! Thanks for advice.

High-demand short-term rental markets like Orlando, FL, Phoenix, AZ, and Nashville, TN are great for house hacking because you can leverage the high occupancy rates for STRs to offset your mortgage. From a credit perspective, house hacking also helps you build strong cash flow, which can make it easier to secure financing for future deals.

Additionally, if you're targeting high-appreciation markets, you could also look into cash-out refinancing down the line to pull equity and fund additional investments. Just be cautious of DTI (debt-to-income) ratios when qualifying for additional loans if you're relying on projected STR income—most lenders require at least 12 months of rental history. What's your credit strategy when scaling through house hacking?

House hacking isn't just about the market—it's about your lifestyle goals and risk tolerance. For some, a smaller market with lower property costs may provide greater financial flexibility, while others might prioritize high-demand cities for quicker tenant turnover. How do you balance these considerations when choosing a location?