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Updated 11 months ago, 01/25/2024
Househacking vs buying rental properties?
I am trying to decide whether househacking makes sense here if my goal is to generate $6K/month passive income asap.
I live in bay area California. I have the opportunity to build two ADUs on my primary residence. The ADUs will cost me total $700K to build. Assuming no loan, these will generate total $6K a month income after taxes.
Does househacking make sense here, or should I just focus on buying cash flowing rental properties in the country, or do both?
Househacking primary home = pays the mortgage on my home, instant $6K income, peace of mind, but some loss of privacy, too many eggs in one basket, appreciation on 1 property only.
Buying rental properties instead = multiple properties appreciating over time, more diversified, but cash flow very hard to find, how to get to $6K cashflow instantly?
I will appreciate any advice please.
Thank you so much!