Are you tired of paying rent or your daily living expenses? If yes then, House hacking might be the right real estate strategy for you. It allows you to live in a property you own while renting out a portion of it to cover your living expenses. You can achieve this by buying a multi-family property and residing in one unit while leasing out the rest, or by renting out rooms in a single-family home.
The rent you collect straightly goes towards your mortgage, property taxes, insurance and other expenses reducing the financial burden.
How does house hacking work?
House hacking is simply a way to turn your home into an income-generating asset. The first step would be to buy a property with a rental income potential such as a duplex, triplex or single-family home with extra rentable space.
Now, once you own the property rent out the additional spaces to reliable tenants to generate income.
As a landlord, you’ll be responsible for the maintenance, handling repairs and maintaining a positive environment for the tenants.
Benefits of House Hacking
Cash Flow Generation
As you are renting out the additional spaces of your property, you are also generating a regular income. Depending on the rental market situation you may not only cover living expenses but can also generate a positive cash flow.
Thus, the extra income be used for debt payments and further investment opportunities.
Lower Living Expenses
One major advantage of house hacking is the significant decrease in your living expenses. Your rental income can help you offset a substantial portion of your mortgage, utilities, and other housing expenses.
Property Management Expertise
House hacking offers a valuable opportunity for acquiring hands-on expertise in managing properties. You’ll gain knowledge on tenant screening, repairs, and the legal aspects of being a landlord – essential skills for your future real estate pursuits.
House hacking comes with a fair amount of challenges, such as managing tenants and potential privacy disturbances.
Nevertheless, for individuals who are open to the idea of sharing their space, it can be a highly effective strategy to kickstart their financial objectives and acquire valuable experience in the real estate industry.
Let Sapphire Real Estate be your partner in finding the best properties to begin house hacking!
