WHAT IS "HOUSE HACKING"?
The dream of home ownership and building wealth through real estate feels more and more out of reach with home prices skyrocketing across the country. House hacking is an awesome real estate investing strategy that makes owning real estate easier. This strategy reduces or eliminates your house expenses by renting out extra rooms/units in your primary residence.
WHY SHOULD I HOUSE HACK?
Low Down Payment
A standard down payment on an investment property is 20% but house hacking only requires you to only put down only 3-5% since you'll be living in the property. On a 500k property, that's a difference of 60k - 75k down payment to control THE SAME property!
What is your largest expense every month? I'd bet that it's probably housing. House hacking allows you to reduce and sometimes even eliminate it completely. What would you do with the extra 1k - 2k/month in your pocket? Would you travel, save, or invest more? It's up to you!
Own Real Estate
House hacking is the best way to get started in real estate investing to building passive income and earn equity over the long-term with appreciation. Each year you can rinse and repeat this strategy to start your investing journey.