With the upswing in the country's short-term and mid-term rental markets, a unique opportunity is presenting itself to house hackers during a time when it's harder to cash flow than it was a few years ago.

My underwriting would have this large negative cash flow for 7 years.I would do a thorough underwriting but want to show using quick math the issue so I will use the 50% rule.  

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

Purchase price: $20,000 Cash invested: $45,000 Sale price: $99,000 Contributors: Peter Vekselman Partner Driven and Amanda Frecks teamed up for an exciting flip on Main St, Grainfield, KS.

Always evaluate your options based on ROI and the impact on tenants to find the best path forward.Good luck!

The problem I ran into was that most buyers that wanted to do it, couldn't bridge the equity gap and the sellers needed the equity to go buy the next one.   

@Kyle Carter just because a building has all section 8 tenants doesn’t necessarily mean that the cap rate will be higher on exit but it might attract a buyer(s) that are focused cashflow and not appreciation; therefore a lower price to juice the yield.One of my non negotiables if I were you would be to only buy in an area that is desirable.  

You can also find real estate investing groups through meetup.com, Facebook, or a Google search.

They give the benefit of instant liquidity and being able to sell them when you need the cash.

@Tim Holt, Yes INDEED house hacking is the best option for most 1st time buyers.