Originally posted by @Carlos Castillo:
Thanks but I live with my parents right now free of rent. I agree that it sounds like a great idea but since I dont pay rent it does not work great for me.
Living rent free is great, but you are not building equity while you are living at home. If you house hack you have someone paying your mortgage even if there is little to no cash flow you are still coming out ahead. For a person still in college, I think this is a great way to enter REI.
-You live where your wealth is being generated, so you can keep a close eye on your investment.
-You can easily rent to other students who are trying to stay away from the dorm life.
-When you graduate and start your career you will be able to marry the missing income to your existing investment.
-Lastly (as mentioned above) you will build relationships with people who move all over the country to different markets and they will know you are serious about investing should they decide to get involved as their careers progress.
I had a friend who did this and paid a significant portion of his mortgage with a nice 4 bedroom home during college. By renting each room he was able to receive more money per month than if he rented the entire house to a single tenant.
Good Luck!