How to House Hack in Colorado Springs

House hacking isn't just a fad, it's a smart way to live for free while you get the perks of owning real estate. If you're in Colorado Springs and you want to save on rent and make some money on the side, here are some great strategies.

Things to Consider

If Colorado Springs is where you're looking to start your real estate empire, you're in luck. This area offers a several house hacking options. But before we talk about those options, consider a few key points:

• Privacy: Are you cool with sharing a wall with your tenant, or would you rather have a buffer zone?
• Cash (or access to it) - Got money for a full kitchen remodel? Or just enough for a coat of paint? Your budget matters. Some of these options require remodels or require furnishing units.
• Loan Qualification: Multi-family homes might offer more rent potential, but they often come with a heftier price tag. Know what you qualify for.

Strategy #1 House and Cottage

Don't underestimate the allure of a quaint cottage at the back of a main house. You could live in either and rent out the other. This arrangement often provides more privacy than a duplex. There are a lot of these around Colorado Springs. Especially in the desirable Old Colorado City area. If they are in good shape and in a good location, expect to pay a premium.

Strategy #2 Duplex/Triplex/Fourplex

The classic route to house hacking. Live in one unit, rent out the others. You’ll share walls, yes, but you'll have your own unit. There are a lot of multifamily units in Colorado Springs. New ones coming on the market everyday. This is a great option to get started.

Strategy #3 Single Family Hacking

A single-family home can also work for house hacking. These are the most common type of residential property in Colorado Springs. They are literally everywhere. Single Family Homes provide a lot of options for House Hacking if you know what to look for.

Here's a couple examples:

• By the Bedroom: Simply rent out individual rooms. This offers less privacy but is easy to manage and start.
• Basement Unit: Turn the basement into a separate unit complete with a kitchenette. Find a home with separate access to the basement. This could be a walkout basement. Sometimes there are creative ways to make a second entrance. For example: split level homes, a garage that walks into the basement, or even cutting through the foundation to make a second door. A little bit of framing or putting up a door and you have a separate entrance.
• Garage Conversion: I've done this twice. It works! A converted garage can serve as a fully functional independent unit. Read more in my garage conversion blog.

Strategy #4 - Build an ADU (Accessory Dwelling Unit)

Don't be intimidated! This is not too much for you. We work with lenders who will lend you the money to buy the original home and build the ADU. We also have vetted ADU builders.

In Colorado Springs, your lot will need to be zoned R2, R4, or R5 in order to build an ADU. The lot size also has to be bigger than 5,000 sq. ft (most are). There are other rules and setbacks you have to follow. We can help you sort through those with the city.

Building an ADU gives you a brand-new, customized space to either live in or rent out.

These are the house hacking strategies in Colorado Springs. Each strategy has its benefits and its challenges. There is no right or best way to house hack. It all depends on your goals.