House hack questions

[Shaheen Pirouz]

I have a house hack that’s a main house with two guest houses. I’m living in one of the guest units and renting out the other two. My question is how do homestead exemptions, tax deductions for repairs, and depreciation (3k a year for rentals) work since it is considered single family but I’ll be renting part of it? Any tips and advice are also welcome since this will be my first house hack. Thanks in advance!

In TX by the way

[Michael Plaks]

Originally posted by @Shaheen Pirouz:

@Michael Plaks

Thank you for the article, although I strongly disagree with your statement that house hacking is not investing. I will be going from spending $1300/mo on rent to netting $400/month profit. That's a $1700/month difference; where else do you get that much ROI?

It's a free country, we can disagree on anything :) 

Here is my point that you're missing. House hacking mixes together two completely different concepts: making money from renting real property to others (aka investing) and finding a way to not pay for your personal living expenses (aka millennial mindset). You can combine it, but you do better by separating them.

It's like opening a restaurant so you can eat "for free" yourself.

Once you make enough money from investing, your personal expenses become a non-issue. And the sooner you pull apart personal from business, the faster you will reach that point.