Newbie Question about house hacking

[John Magana]

If I am understanding House Hacking, I am basically renting a room in the dwelling in which I reside to a tenant. And I assume most times the tenant will have the run of the kitchen and laundry room and maybe some garage space as available? Does this sound right? And can anyone share what to look for in a tenant? thanks.

[Cassi Justiz]

There are a few options with house hacking. Think of it more as a "roommate" situation. If you are renting out a room, they will have access to common areas including living room, kitchen, living room, yard, etc. Pick a roommate based on criteria that is important to you. You'll want to do the normal due diligence like make sure they have income, good references, can pass a background check, etc. Because you will be sharing a living space with them, you'll want to make sure their lifestyle is compatible with yours. (Do they have children that will also be moving in or spending time there, do they work weird hours or work from home where they need silence in the home during the day, etc). Also, think about pets, smoking, or other deal breakers that you can establish up front before you start interviewing potential tenants. 

Other options for house hacking single family units would be to furnish a room and do short or medium term rentals. You could rent to traveling nurses/contractors on a month to month basis or even just rent out the space on the weekends if you live in an area that makes sense to do so.