House hacking as a newbie

[Rania Mutumhe]

Hello everyone, 

I've been learning a lot about house hacking and I think I'm ready to jump in. I'm single and I bought my 2 bed 2 1/2 bath townhouse as a primary home with no thoughts of REI. Mid last year I came across biggerpockets, have been learning about REI and am thinking house hacking maybe the place to start for me. I'll need to make some renovations like finish my basement so I can make use of that as well and move laundry to a more central and convenient spot so it can be shared. What are some things to keep in mind, how does one do a background check, what are the laws regarding that (I'm in St Louis), any advice, thoughts recommendations etc is greatly appreciated.

Thank you

[Randall Alan]

Quote from @Rania Mutumhe:

Hello everyone, 

I've been learning a lot about house hacking and I think I'm ready to jump in. I'm single and I bought my 2 bed 2 1/2 bath townhouse as a primary home with no thoughts of REI. Mid last year I came across biggerpockets, have been learning about REI and am thinking house hacking maybe the place to start for me. I'll need to make some renovations like finish my basement so I can make use of that as well and move laundry to a more central and convenient spot so it can be shared. What are some things to keep in mind, how does one do a background check, what are the laws regarding that (I'm in St Louis), any advice, thoughts recommendations etc is greatly appreciated.

Thank you

@Rania Mutumhe

Hi Rania,

Usually house hacking is where you have a multi-family property (like a duplex or triplex) and each tenant has their own unit.  It sounds like what you are describing is more like someone renting your basement space.  Is that correct?  (This is presuming your basement doesn't have all the other necessary things like a kitchen, bathroom, tub/shower, own entry, etc for a renter?)

That is a very different proposition - as you would be sharing your common spaces with a stranger.  My first word of advice, if that is what you are proposing, is to make sure you are ready for all that means.  You will basically be giving up a large amount of your privacy to a relative stranger.  In addition, they will need space in the common areas for their stuff as well (think refrigerator & pantry for food, etc.)

No background check will show how clean they are, how they respect your space, whether they are a loud person, or a night owl, who they invite over to stay with them and such.  It wouldn't be for me, but I do have a friend who does a rent by the room operation and he is very happy with it.  It is a lot about personalities.

All the best!

Randy