Coffee talk got me thinking about house hacking vs. waiting for the perfect starter home

I was grabbing coffee at Central Coffee in Plaza Midwood last week with a guy I know who flips houses. He said he's bought 3 properties in the last 2 years by house hacking, just renting out rooms to cover the mortgage. I always thought it was better to save up 20% down and buy a place you actually want to live in long term. Which approach do you think makes more sense for someone in Charlotte right now with these prices?

2 comments

2 Comments

the_karen15d ago

Expand on that house hacking point he made, a lot of people don't realize how fast you can build equity when your tenants cover everything. Seems like in this market it's the only way to get a foot in the door without waiting forever to save that 20%.

palmer.ryan15d ago

You said "the only way to get a foot in the door" and I gotta push back a LITTLE. House hacking is GREAT but it's not the ONLY way. I know a few people who got in with 3-5% down on an FHA loan for a duplex and still had tenants cover most of the mortgage. That's basically the same thing without needing a big pile of cash. The REAL trick is just being willing to live in a less perfect place for a year or two while the equity stacks up. But yeah, the "tenants cover everything" part is totally true once you get past the first few months of repairs and vacancies catching you off guard.