Hey there!
If you’ve done any research on real estate, you’ve heard about WHY house hacking can accelerate your real estate journey. Today I want to share HOW.
We’ll talk about 4 strategies to get house hacking asap. Let’s go!
House hacking is buying a property and renting out part of it while living in another section. This approach helps reduce or eliminate housing expenses and can generate passive income.
I only started house hacking after I bought my first few properties and I’m kicking myself because I could’ve grown so much faster!
There are so many different ways to house hack, but let’s review why first...
You qualify for better terms with owner occupied financing
You enjoy a more flexible lifestyle because you’re covering your mortgage and expenses
It’s an easy way to become a real estate investor, especially as a first time home buyer
You’ll build more equity through appreciation than you would on a home you could only afford yourself
So what are the 4 house hacking strategies? 1. Single-Family Rentals The easiest entry way to start house hacking is with a large single-family house. You can live in one room while renting out the rest or live on the main floor while you rent the basement and vice versa. Even if you just implemented this one strategy over your working life you can generate fantastic wealth. E.g. Buy a house hacking home a year with good owner-occupied terms like low downpayments for 4 years and in 30 years you’ll have a multi million dollar portfolio. 2. Multifamily Properties Multi-unit properties include duplexes, triplexes, and fourplexes. Here, you live in one unit while renting out the rest. You can even use FHA loans for multifamily properties, which require low downpayments especially first-time home buyers. If your goal is to grow your portfolio fast, I suggest getting into multi-family as soon as possible. These properties are designed with investors and the business of real estate in mind. They will also help you gain good experience for larger multi family deals in the future. 3. ADUs ADU stands for “Accessory Dwelling Unit” - a separate temporary or permanent structure on your property that can be rented. Renting an ADU works well if you have a family or want more privacy. You can either purchase a property with an already built ADU, or build one yourself in the backyard. 4. Short-Term Rentals This is how I got started house hacking. You can use any property as a short-term rental. Just list your property on platforms like Airbnb or VRBO, and rent them out as often as you’d like. I started by renting my primary residence on the days we were out on vacation and then rented it full time after we bought another property we could short term rent and lived there while we repeated the process. House hacking offers an incredible opportunity to jumpstart your real estate investing journey while minimizing living expenses. These 4 strategies will help you generate income, build wealth, and open doors for future investments. Hope you enjoyed this week's issue of Secret Empire See you next week!