HOUSE HACKING

House hacking is a term that was recently coined and is when a portion of a property is rented to generate revenue. Examples include; single family home owners renting a bedroom either long term or through Airbnb, and 2-4 unit multi-family property owners living in one unit and renting the other/s.

With the rising cost to purchasing a property it’s no surprise that this is becoming more popular. It’s a great way to generate more revenue and decreases expenses at the same time.

I’m a little biased having started my investing journey this way, but I believe it’s the best way for first time home buyers to start. Since 2-4 units are categorized as residential properties you can still purchase a property with at little as 3.5% down. In return, you just have to guarantee the lenders you’ll live there for one year.

If you’re ready to purchase a property but the expenses have you worried, remember this option.