Did you know that most monthly mortgage payments easily take around 18-30 percent of a household income?
Housing is one of the largest costs we have to pay on a regular basis.
What if you want to own a home but feel you can’t afford the monthly payments? Is there a way to live free?
Yes, and it’s called House Hacking.
What is House Hacking?
House hacking is a method of living free in your multi-unit property by renting the rest of the units to other people. It basically eliminates your housing expense by using other people’s money.
House hacking is a form of real estate investing which eliminates your housing expense.
Though relatively new in concept, house hacking is becoming a trend for many young, smart investors. House hacking is a form of real estate investing which requires a good working knowledge about how the market works at present and how it could change in the future.
Multi-unit properties can be duplex, triplex, or even fourplex. There are also people who take it a step further by using their garage or a separate mobile home.
How Can House Hacking Help You?
House hacking is all about living free (or having reduced costs) on a property while other people pay your housing expenses for you.
- 1Less Rent Means More Savings
Mortgage payments can hurt your wallet when you decide to purchase a home. However, with house hacking, having a separate unit paying rent will significantly lower your monthly costs. House hacking will give you more income than doing the traditional renting or buying options we’re all so used today.
With house hacking, having a separate unit paying rent will significantly lower your monthly costs.
- 2Helps You Generate a Passive Income
House hacking can be a great side-hustle that will allow you to generate passive income - meaning you’re earning money as you sleep. You’ll also be happier and less stressed with lower payments every month. With your passive income, you can pay down your mortgage or invest in additional properties.
House hacking allows you to make life changes more easily.
- 3It Offers Flexibility
Want to move somewhere? No problem. Just rent out the unit you’re currently living and get a place in the neighborhood you want to move in. House hacking makes you more flexible with all your life changes.
- 4It Teaches You a Lot About Investing
Young adults who are learning the ropes of investing will gain lots of experience house hacking. You’ll also make the best of your cash flow and get a great head start in building your wealth.
- 5It’s Low Risk
Unlike investing in other businesses, real estate offers more security and excellent returns. If you’re looking to buy a new home but still feel you can’t afford the monthly mortgage, try house hacking.
Real estate offers security and excellent returns.
- 6It’s Easier to Manage
Generally, house hacking is an easier way to manage tenants, compared to being a landlord managing your rentals. You only have to be responsible for repairs and maintenance around the house.
House Hacking Options and Ideas
- 1Duplexes, Triplexes, & Fourplexes
- 2Spare bedrooms of single family homes
- 3Basement or Garage Apartments
- 4Renting On-Site Cottages on AirBnB
- 5RV rentals
House Hacking Essential Tips
Key to a successful house hacking is creating good relationship with your tenants.
House hacking can be very overwhelming at first. Managing tenants is a lot of work with all the maintenance, repairs, and managing payments. In this section, I’m going to give a few helpful tips on how you can succeed in your house hacking goal effortlessly.
How You Can Succeed in Your House Hacking Goal Effortlessly
- 1Always remember to fix wiring, plumbing, and other parts of the house that need immediate repair. Call in a professional for anything you’re not comfortable with.
- 2Make yourself available for communication on a frequent basis. Let your tenants feel that you’re just a text or phone call away.
- 3In order to create good relationship with your tenants and have consistent income every month through rentals, you should show that you care about your tenants and your property as much as you care about your money.