3 Reasons You Should House Hack This Year!

House hacking is a real estate investment strategy that involves buying a property and living in one part of it while renting out the other parts to generate rental income. It's a great way for people who are just starting out in real estate investment to get a foot in the door without having to come up with a large down payment or take on a lot of debt. Here are three benefits of house hacking:

1. 1. Reduced housing costs: By renting out a portion of your property, you can significantly reduce your housing costs. Depending on the location and the size of your property, the rental income may be enough to cover your entire mortgage payment, leaving you with little to no housing expenses.
3. 2. Cash flow: The rental income you receive from your tenants can be used to offset your mortgage payment and other expenses, which can help you build wealth over time. By using the cash flow from your rental income to pay down your mortgage or invest in additional properties, you can build a portfolio of real estate investments and increase your passive income over time.
5. 3. Tax benefits: Rental income is generally considered passive income for tax purposes, which means that it's taxed at a lower rate than earned income. Additionally, as a real estate investor, you may be eligible for tax deductions for expenses related to your rental property, such as mortgage interest, property taxes, and repairs and maintenance.

Overall, house hacking can be a great way to get started in real estate investing and build wealth over time. By living in one part of your property and renting out the other parts, you can reduce your housing costs, generate cash flow, and take advantage of tax benefits.