All Forum Posts by: Mariah Porter

Hope this helps, good luck Mariah!

@Mariah Porter way to make the first post and such a great one! House Hacking is a great way to get started and also an easy way out. Say you found a duplex, a house with a detached unit, or a roommate. You get it rent out some of the space or units and see if you like it or not. If you don't move out sell the house and chalk it up to gave it a try. However I think if you go from paying rent or paying your entire mortgage to getting cash coming in to subsidized you monthly payment you will be hooked and want to do more. Now if you already have a house and just wanting passive income with rentals and hiring a PM, in my opinion your location doesn't matter as you have someone else managing it so go where you want to. 

However I have to push back on not finding any properties that could be used as house hacking. Try hitting up a agent and let them know what you are looking for and I bet they could have you a property that would work.

@Mariah Porter I am in your market. We work with a lot of investors to purchase properties here. But the main determination is what is your current need and what is your goal. And much of that will also depend on your current financial position. In particular your debt to income. The reason is that if you have a negative cash flow property, and that single property pushes your dti far above what any bank is willing to work with, you will not be able to get another loan for another property. I think ideally, if you can do a house hack, even if it doesn't come out positive, you will still be ahead. If you were to buy a house to live in or rent a place, you will likely be spending between $800-1300/mo. If you can find a small multi-family to house hack, you may either break even or maybe you will still have to may a few hundred per month. But which is better? Paying a few hundred per month or $1000/mo? You will be saving more income, and it will help your dti since you have most of your housing cost covered, AND most likely by the time you move out and rent your unit, the property as a whole will be cash flow positive. I am certain that we can find something local that can work, it may depend on if you have specific criteria you need for bedrooms and location.

Generally though, if you don't have a strong financial position, most people opt for cash flow first. This can also be tricky. Sometimes the high cash flow areas are also places with low incomes and not a strong tenant base which can create other problems and costs and in the end still lose money and no appreciation. At the same time investing purely for appreciation is risky and speculative since you never know what the market will do. Personally, my local investments have done far better than my out of state properties for both cash flow and appreciation. Also, when analyzing a property, even if it breaks even now, or maybe slightly negative, you can expect rents to increase over time. So don't just look at how it is now, consider how it will be 5 years from now. There are several I passed on a few years ago that I wish I had bought because now values and rents have appreciated a lot and those properties that did not cash flow back then, would be now and have doubled in value.

Alternatively, you can also look to partner with others. I have done several partnerships and done well with that to invest in deals I could not have otherwise. Happy to meet up sometime if you would like to discuss more.