Are you interested in how to become an investor without great expense? Are you an investor looking for a new real estate investment strategy to diversify your portfolio? Or maybe you are new to investing and are looking for a way to get started that just makes sense. If so, house hacking may be for you.
What is House Hacking?
House hacking is a great way to get started in investing while reducing your expenses. It is a real estate investment strategy that allows investors to earn money without having to put out too much. Here are a couple of examples:
- Investing in an owner-occupied multi-family building. Your living expenses are offset by the rental income received. This is most often a duplex, triplex, or quadplex.
- Investing in a single-family home and living in it while you make improvements and get ready to sell it when it is done within a year or two.
- Renting out a bedroom or basement in your family home or even an additional building on site.
Benefits of House Hacking
Smart investments mean that there must be some reward, right? Well with house hacking there are a few benefits that you may be privy to, such as:
You can start investing without needed a lot of money. Not to mention that it will help you be able to focus more closely on the needs of tenants and learn the ropes of a landlord. Of course, this could also teach you that you prefer to focus on investing and allow a property manager to handle the rest.
Getting rid of your own housing costs. House hacking can help you drastically decrease your housing expense - or get rid of it altogether. Investing in a multi-unit property can be a great investment that adds value to your portfolio. But, they are expensive. Giving up your own house and moving into one of the units, for example, can save you a ton.
Gain passive income for future investments. When you decide to practice house hacking, you are setting yourself up for success in the future. The investments you make today will continue to provide you income for years to come. And by keeping your expenses low, you increase the value of that income.
Final Thoughts
Depending on where you are along your real estate investment journey, house hacking ideas may be something you could use to help you save money while still investing. Everyone strategizes differently and what may work for some will not work for all. If you are looking for a way to start investing in general - or investing in multifamily properties - try house hacking.
