Live for free
House hacking – You may have heard about it online, or maybe your friends mentioned it at a BBQ, or maybe you’re completely new to it.
In this blog post, I will go over four different house hacking methods that you can implement in your near future and jump start your real estate investment journey.
The Traditional House Hacking Method
- This is where you purchase a duplex, triplex or 4 unit building.
- You live in a unit, rent out the rest of the available units, and collect rent payments to cover off the mortgage.
- In many cases, if done properly, house hacking can provide you little to no mortgage payments. The setup may even provide you with some extra income which would mean that you are essentially living for free.
- It should be noted that this method is best used in lower priced markets and may not be feasible in high priced markets.
The Room Rental Method
- In cases where you are not able to find an appropriate duplex or triplex, a single family home may be your best option.
- In this case, your best bet is to occupy a bedroom for yourself, and rent out the other bedrooms in order to offset the mortgage payments.
- Renting out a house by the bedrooms will result in more income from rent, but it will require you to live with multiple roommates. Problems or Profits right?
The Trailer Method
- If you are trying to squeeze every single cent, nickel and dime from your house hacking strategy, this option may be for you.
- Essentially, you would purchase an investment property like you would in the previous scenarios, except this time you purchase a trailer as well.
- You then park the trailer on that property and live in it while you rent out the building at 100% capacity. This will maximize your rental income potential from the property.
- Although this strategy may sound great in theory, it takes a certain type of hustle to pull of this method, and may not be for everyone.
The Additional Dwelling Unit Method
- This is the most convenient method for those with families that do not want to share their living space with others.
- Essentially, you purchase a property with an additional dwelling unit or a property where you have the ability to construct one on the property. The unit should include at minimum a small kitchen, operative bathroom and a comfortable bed to sleep in. You then rent out that unit and use the income to offset your mortgage payments.
- This method may be used for long term rentals, but is best used as an Airbnb strategy. This option can help maximize your returns while maintaining your lifestyle.