I Learned About House Hacking On YouTube And Tried It To Become Financially Stable. A Few Years Later, I Hate It

A 27-year-old software engineer from New York sought financial stability without the burden of high rental costs. Inspired by house hacking videos on YouTube, he purchased a multifamily property, choosing to live in one unit while renting out the other two. The strategy was straightforward: let the rental income cover his mortgage and use real estate as a means to build wealth.

However, 18 months later, during a call to "The Ramsey Show," Thomas expressed his dissatisfaction with the arrangement. He found himself unhappy living in a lower-income neighborhood and desired a move to a more desirable area. Faced with a dilemma, he was uncertain whether to continue renting out his property while he moved to an apartment or to invest in another multifamily home to extend his house hacking venture.

Co-host George Kamel inquired about what initially attracted Thomas to the concept of house hacking. Thomas explained that after becoming disillusioned with high rent prices, he turned to YouTube for solutions and was convinced that buying property was a better option than renting. "I mean, I just want to become financially stable," he stated.

Kamel cautioned him, saying, "A lot of times the things that seem really cool on the internet are often going to destroy your life." Co-host John Delony related Thomas's experience to his own past with biohacking, where he meticulously tracked his health metrics until he realized it was leading him to a life he did not enjoy. "Then one day I was like, I'm biohacking myself into a life that I hate living," Delony recounted, ultimately abandoning the practice.

The conversation shifted when Thomas shared his financial situation. Earning an impressive $300,000 annually as a software engineer, he had only $4,000 in student loan debt, which he could pay off immediately, leaving him with a substantial $90,000 in savings. Kamel remarked, "You know who doesn't need to house hack? Guys who make $300,000 as software engineers."

Thomas purchased his multifamily property for $690,000, with an outstanding mortgage of approximately $650,000. He estimated the current value of the property to be around $750,000. His tenants nearly cover the entire mortgage payment, resulting in a monthly out-of-pocket cost of about $100 for him.

Kamel pointed out that Thomas was effectively securing very affordable housing in exchange for the responsibilities and risks associated with being a landlord. Despite the initial appeal of house hacking, Thomas's experience serves as a reminder that what may seem like a savvy financial strategy on the surface can lead to unexpected dissatisfaction and challenges.