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For some, house hacking is the key to getting started in real estate; for others, it's just a smart way to build cash flow into an otherwise uncooperative rental market. Wondering how to get your foot in the door? Here's what you need to know.
The term "house hacking" was coined by Bigger Pockets, but in general, the practice has been going on for as long as people have been owning and renting properties. House hacking refers to renting out a part of your primary residence. Generally, that means owning a duplex, triplex, or quadruplex, living in one unit, and renting out the rest. For some, it means renting out one or more rooms of a single-family residence. In an ideal scenario, house hackers can essentially live for free--allowing the rental income from the space they rent out to pay for the mortgage and maintenance of the entire property.
As with any investment, the viability of house hacking depends on the market in your area. But for many who want to get into real estate investing but haven't yet taken the plunge, it's a smart step.
Step one: talk to a lender. If you can get pre-approved for a single family residence, you can get pre-approved for a duplex (or larger).
Already own a home? Consider renting out an extra bedroom, or finishing the basement to rent out as an ADU. And even if you don't net massive positive cash flow at first, you'll massively offset your own cost of living, while gaining valuable experience as an investor and property manager.
Experience isn't expensive, it's priceless! I've been a full time Realtor since the age of 19. The unparalleled experience that I've gained since 1986, along with the dedication to my clients and tireless work ethic will prove invaluable whether you're in the market to buy or sell. I was voted a " CT Five Star Real Estate Agent" by my clients for 2024 & previous years, rated in the top 3% of all Realtors for service and satisfaction as featured in Connecticut Magazine. My team of attorney's, mortgage lenders and contractors are ready to assist you with all your Real Estate needs. Contact me today for fast results, guaranteed!