What is HOUSE HACKING?

[Taylor Ratliff]

House hacking is the strategy through which investors earn income by renting out “rooms” in their primary residence. ANYONE can be an investor and facilitate this strategy to pay for their mortgage on the home. 

House hacking can include basements turned into living spaces, renting out individual rooms, sectioning off certain parts of the home, and putting livable structures on the same lot.

While the average American household spends around 33% of their annual income on a mortgage, it might be a great idea to house-hack to eliminate your housing costs. Renting out individual rooms could possibly pay your entire mortgage for you. This allows you to build equity into your home from someone else’s dollar.

House hacking is also a great way to build your investment portfolio. It gives you the opportunity to act as a landlord and learn new management skills all while living rent free.

The additional cash flow from this strategic purchase can save up the funds needed for your next investment property.

If you are a first-time home buyer, a great way to start your house hack is to look into your states down payment assistance programs. You could potentially have the state pay for your down payment for an income producing property if you list it as your primary residence.