Quote from @Rickina Velte:
I'd rather hear it form people in the trenches actually doing it vs seeking out 'guru' answers on Google. Thank you in advance, I'm in the Hampton Roads, VA area. Hoping to connect with other local active investors.
House hacking, as mentioned by the previous replies, is simply maximizing your profits in your primary or next home. Whether it is renting by the room, renting a room, renting a unit, etc., it's finding a way to turn your own house into a profitable operation, hence the "hacking."
The long-term play for house hacking typically go this route: once you are done in that house, you move out, occupy your previous living space, and now you have your first rental. Ideally, you would underwrite your numbers before buying as if you were not living there to make sure that when you left, it is performing positively. Later on, you can sell (and defer capital gains & depreciation if you've lived in it 2 of the most recent 5 years), you can 1031 exchange it if you do not claim it as your primary and can show evidence of rental history, etc.
It is basically buying an investment property without having to use higher down payment methods used traditionally. You can utilize lower down payment options typically reserved for owner-occupied borrowers, but eventually turn the home into an investment property.
Sometimes you will not cashflow while you are living there, but that's why we run our numbers as if we are not living there first! I am currently house hacking a 4plex I bought in 2020 and it has been nothing but life-changing. Our goal is to refinance in 2024 and move on to the next property. It's currently a mix between long term and mid term renters and we plan on doing short term or mid term with the current unit we are living in.
Hope that helps! Best of luck to you on getting started and let us know how we can help!
