executivechronicles.com | What Is House Hacking and How Can It Make Me Money? |
Have you ever heard of house hacking?
This hot new investment strategy is quickly gaining in popularity. And, for buyers who get in the game now, the financial payout could be huge!
If you’re new to the concept, don’t worry. This is your article. Keep reading to learn all about house hacking – what it is, and if it’s the right investment for you.
What Is House Hacking?
Simply put, the house hacking strategy uses a real estate investment to provide the owner with free housing and a steady monthly income at the same time.
In most cases, investors use a multiple unit property such as an apartment complex or mobile home park to maximise their monthly income. This allows the owners to live in one unit while renting the others out to tenants.
The rent you charge in the spaces that you aren’t occupying pays for the property’s mortgage and monthly expenses, and in some cases, may also generate a passive income. This money can be put toward savings or future investments.
House hacking is also possible in single-family homes. In this case, the investor typically rents out spare bedrooms, or an alternative space like an attic, garage, or basement, while occupying the home.
Should You Invest?
Real estate investing isn’t right for everybody. But, the house hacking strategy does offer a few advantages over traditional landlord’s business plan.
While your upfront investment might be larger, you’ll likely see a return much faster thanks to your multiple income streams. And, the more units you rent out, the more income you can expect each month.
This multi-unit approach also helps guarantee a steadier income. Even if one renter moves out, you’ll still have others to rely on.
Other Big Benefits
If you’re hoping to get further invested in real estate or continue your career as a landlord, this strategy will help you learn the ropes. You’ll be living on-site close to renters, so you’ll get plenty of experience troubleshooting and managing your property. And, you won’t have to rely on (or pay) a management team to look after your investment.
House hacking could also put you on the road to early retirement by using what’s known as the debt snowball method. This multi-faceted approach employs real estate investing to pay off debts. It’s also an excellent way to purchase and own income-generating property free and clear.
Want to know more? Check out this house hacking case study for a real-life example of one investor’s success!
Now that you’ve learned a bit more about house hacking, you’re probably excited to get involved. That’s awesome! Reading this article could well be your first step on the road to making your real estate investment dreams come true.
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