Why house hacking?

[Fareha Zeb]

Why is house hacking so popular these days?

[Brandon P.]

Many reasons, but mostly because it is the easiest entrance into owning real estate.

[Amy Greenwood]

We were already investing in real estate. So, when we moved to a new city and bought a home, we could not imagine our home NOT making money in some way. So we are actually doing a live-in-flip AND house hack. The majority of the house is done, but while we are waiting to sell, we will rent out 2 rooms. One long-term and one mid-term. 

[Malkia Ra]

House-hacker here.

(1.) It's a great way for homeowners to supplement their mortgage payments/pay down their mortgages faster.

(2.) Because who doesn't love passive income?

(3.) Most market-rents are SO out of control, renting via a house-hack is often way more affordable for renters.

(4.) House-hacking allows you to use the income from renting to purchase more properties.

[Jimmy Bostic]

@Fareha Zeb I think it's because it's a low level entry point into real estate. It allows (usually new) homeowners to purchase real estate that, they were probably already going to invest in, and collect passive income to help pay off their mortgage. I've found that it works great for young adults utilizing their social networks to find friends to live with (particularly post college).

[Ben Einspahr]

@Fareha Zeb

1.can get in for low down

2.hands on land lord experience

3.decreased living expenses

4. excellent ROI on the 5% down. (+80% ROI)

5. Live and flip options

... to name a few

[Dave Foster]

@Fareha Zeb,  Community, relationships, roommates, and all the other financial reasons listed above!!!

[Jake Andronico]

Fareha,

House hacking just two single family homes has completely changed my life. 

Here's 3 reasons why: 

1. After moving out of the second one they now both cash flow around $1k per month each. 

2. I was able to live for free, sustain a similar lifestyle (living with college roommates right out of college) and learn the invaluable experience of communicating and living with my tenants. 

3. With record high prices and interest rates rising, entrance into the housing market generally takes getting creative. House hacking can make something work that otherwise wouldn't have. 

Just my .02 cents, but great question. It's certainly becoming a lot more popular and I believe that will not slow down. 

Cheers!

[Julien Jeannot]

- Cost savings: House hacking allows homeowners to reduce or eliminate housing expenses by renting out a portion of the property to tenants, covering part or all of the mortgage, taxes, and other costs.

- Investment opportunity: It provides an accessible entry point into real estate investing, allowing individuals to build equity and generate rental income without purchasing a separate investment property.

- Flexibility: Homeowners can choose to live in the property for a specific period and then decide whether to continue house hacking or convert the entire property into a rental for more substantial income.

- Mitigating risk: Having multiple units with tenants helps spread the financial risk associated with homeownership, ensuring that rental income can cover expenses even if one unit remains vacant.

- Favorable financing terms: Owner-occupied properties often qualify for better financing terms, including lower down payments and interest rates, making house hacking an attractive option for those with limited capital.

- Personal living experience: House hacking allows homeowners to live in one of the units, providing a more personal connection to the property compared to purely investment-focused properties.

[Conner Olsen]

Quote from @Fareha Zeb:

Why is house hacking so popular these days?

Low down payment, reduce living expenses, scale a portfolio quickly.

[Tim Miller]

We bought our house in the middle of the 2008 crash. We turned the basement into a 1 bdrm apt, this was just in case 1 of us lost our job. We would still have income to pay the mortgage. Fast forward to today, rent increases and now we rent out one of our extra bedrooms. Our mortgage is completely paid for, with an extra $350 each month. Plus the tax write offs are great.

Retirement is looking a lot brighter!