Opinions on 2022 house hacking?

[Acridtj]

Good afternoon everyone. I'm new to the forum and just recently have been listening to the millionaire fast lane. I've always wanted more in ln life and have been more inspired lately to forge my own path.
I would love your options and advice on currently using house hacking as a way to get started in RE investing and building off of that? Thank you for any advice

 

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[MJ DeMarco]

Bare minimum: Buy a house and rent out a room, a basement, a garage.
Bare minimum: Buy publicly traded REITS.
Upgrade: Buy a house with a casita, rent out casita.
Upgrade: Buy a duplex, and rent out the other side. I think @Envision started this way and now he's killing it.

Welcome to the forum.

 

[Acridtj]

Bare minimum: Buy a house and rent out a room, a basement, a garage.
Bare minimum: Buy publicly traded REITS.
Upgrade: Buy a house with a casita, rent out casita.
Upgrade: Buy a duplex, and rent out the other side. I think @Envision started this way and now he's killing it.

Welcome to the forum.

Thank you for the response! Hopefully @Envision will give some insight as well. The main reason I was asking is because of how high the market is right now I didn't know if it would be possible to come out cash flowing on properties using these methods?

 

[biggeemac]

Thank you for the response! Hopefully @Envision will give some insight as well. The main reason I was asking is because of how high the market is right now I didn't know if it would be possible to come out cash flowing on properties using these methods?

What is expensive today will be cheap next year. That's been my approach. I bought one house in 2014, one in 2015, and one property that I am currently developing in 2018. I have 250k in equity on the first house (despite doing a cash out refinance last year), 200k equity in the second house, and almost 500k in equity on the developing property (its a luxury build). Housing is not going down any time soon and even if it does, so what? We will not get a handle on the housing shortage for years, perhaps decades. My opinion of course.

If you can cash flow right off the bat, great. But don't let it stop you.....because it will eventually cash flow. The money printers will pretty much guarantee that. I paid a little less than market value on the first house and market value on the last two properties. House hacks are great. Buy a house and rent out rooms. Buy a house with an unfinished basement. Thats what I did.

The first house was quite large with an unfinished basement. I turned a 5 bedroom house into a 9 bedroom house. I can now cash flow $3100 if I just simply rented out rooms, but we earn substantially more by doing a sort of public housing program. There is a lot more labor and expense involved though and its not for most people.

Senior care is a much needed business. Don't get into it unless you are prepared to deal with taking care of people and slowly losing your mind. If you don't factor in a way to unplug yourself from a senior care home, YOU will end up in a home.....I guarantee it.

 

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[Acridtj]

What is expensive today will be cheap next year. That's been my approach. I bought one house in 2014, one in 2015, and one property that I am currently developing in 2018. I have 250k in equity on the first house (despite doing a cash out refinance last year), 200k equity in the second house, and almost 500k in equity on the developing property (its a luxury build). Housing is not going down any time soon and even if it does, so what? We will not get a handle on the housing shortage for years, perhaps decades. My opinion of course.

If you can cash flow right off the bat, great. But don't let it stop you.....because it will eventually cash flow. The money printers will pretty much guarantee that. I paid a little less than market value on the first house and market value on the last two properties. House hacks are great. Buy a house and rent out rooms. Buy a house with an unfinished basement. Thats what I did.

The first house was quite large with an unfinished basement. I turned a 5 bedroom house into a 9 bedroom house. I can now cash flow $3100 if I just simply rented out rooms, but we earn substantially more by doing a sort of public housing program. There is a lot more labor and expense involved though and its not for most people.

Senior care is a much needed business. Don't get into it unless you are prepared to deal with taking care of people and slowly losing your mind. If you don't factor in a way to unplug yourself from a senior care home, YOU will end up in a home.....I guarantee it.

I appreciate the insight, I guess it's just all intimidating to think about with everything being historically high currently. Finding a good deal in this climate that would atleast put me close to positive cash flow would be pretty hard I'm guessing and I would have to try to use an FHA loan to get started out

 

[Envision]

House hacking still works today and it's a great way to keep risk down while learning. But the costs are significantly higher than they were when I started. The house I househacked for 155k in 2015 is now 550k so I am not sure that path would exist at least in my area.

With that being said, I would definitely search for a home and rent out rooms, rent will be your largest expense if you can alleviate that it provides room to reinvest and save for more opportunities.

 

[Acridtj]

House hacking still works today and it's a great way to keep risk down while learning. But the costs are significantly higher than they were when I started. The house I househacked for 155k in 2015 is now 550k so I am not sure that path would exist at least in my area.

With that being said, I would definitely search for a home and rent out rooms, rent will be your largest expense if you can alleviate that it provides room to reinvest and save for more opportunities.

Thank you for the reply! With the price difference it does seem a bit daunting but I definitely still want to try it atleast for the experience and to get my feet wet in real estate. Is RE your main investment? Or is there other avenues you would recommend looking into?

 

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[Envision]

Thank you for the reply! With the price difference it does seem a bit daunting but I definitely still want to try it atleast for the experience and to get my feet wet in real estate. Is RE your main investment? Or is there other avenues you would recommend looking into?

There are deals out there still.

Ecom is my main thing.

All the money i make goes into real estate or my business.

 

[MitchC]

Bare bare bare minimum you can rent a house and rent out the rooms and cashflow or reduce your rent that way.