Real estate business keeps growing each year. It attracts lots of people to start investing and trying out various strategies to make it through. Basically, there is always new real estate investing strategy emerges from time to time. It usually follows the trend and the changes.
For now, you might be interested to get to know more about house hacking. It is one of real estate investing strategies that fits for new investors. Lots of people feel discouraged to start investing in real estate due to many reasons.
One of the reasons is that they haven’t even purchased their own home yet. Is it really a big problem to start investing in real estate?
Find out more about house hacking
House hacking is basically real estate investing strategy in which the investor earns rental income by renting out their primary residence? Is that possible though?
Well, many newcomers in real estate business have started this investing strategy and showed that it worked.
There are different types of house hacking. First is when the investor lives in one of the units of their multifamily property then they rent out the others. Second, they live in a single-family home and rent it out at the same time.
This option is mostly chosen for investors who don’t live in multifamily home or don’t want to purchase one. For investors who live in single-family home, they rent out one of the bedrooms, garage, etc.
According to real estate business experts, this investing strategy fits for those who are interested in earning passive income but still doesn’t really know or have the courage to start with the business. This is also a great way to reduce house expenses. This can be a good start for those who want to try investing in real estate career by baby steps.
Benefits of house hacking
Here are some benefits you can earn from house hacking:
- As mentioned above that house hacking will help homeowner to reduce housing cost. That is basically the main benefit to earn. Of course, multifamily property has higher housing cost. However, renting out some units will significantly eliminate and reduce the expense to some point.
- Next benefits is that house hacking is a very smooth way for you to start with real estate investing career. The transition is smooth since you won’t be overwhelmed with all difficult technical things. You will learn little by little how to be a good landlord and learn more about the business. Next, you will gain needed skills to step up the game.
- House hacking is flexible investing strategy. Even if you are moving out to a new city, you can just simply rent out your property and still earn your income. There is no need to worry about your house.
- House hacking helps you to earn extra cash from passive income. Thus, you will be able to pay down your mortgage quickly. In fact, you can even save up for your next investment in the future.