If you've ever thought it would be nice to not have to worry about your monthly rent or mortgage expense then keep reading.
House hacking is the concept of renting out rooms or units in your property to cover or substantially reduce your living expenses.
How It Works
House hacking can work with any type of property. If you own a 2 bedroom condo you could rent out the spare room. If you own a duplex you can rent out the unit next door. If you own a large single family home you could rent out all the bedrooms you’re not using.
It doesn’t matter what kind of property you own, if you’re motivated and you’re willing to make some sacrifices then you can make it work.
Is It Really Worth It?
To this I’d say that the point of house hacking is not to make money off the rent. Well what is the point then you ask?
The point is to control a real estate asset for a substantially reduced monthly amount while enjoying the other advantages of owning real estate, namely appreciation, loan pay down and the tax incentives that come along with it.
Buyer A buys a $300K single family home with 3 bedrooms and 2 baths. He pays the $1600 mortgage himself and loves his new home, he enjoys doing yard work and loves the privacy.
Buyer B buys a $300K duplex with 2 beds and 1 bath on either side. He rents out the vacant unit for $1000 and covers the remaining $600 of his mortgage himself.
Buyer B still pays to live in his house hack buy is controlling a $300k asset for $600 a month rather than $1600. He’s saving $12k a year and controls the same value of real estate as Buyer A. That’s essentially a $12k raise he’s just given himself. That’s the point of house hacking.
House Hacking Is Not For Everyone
House hacking isn’t for everyone. There are some sacrifices you have to be willing to make. Living next to your tenant in a duplex situation may prove to be a headache at times. If you’re renting out rooms in a SFH you may find it irritating to have people using the kitchen when you want to use it.
If you’re willing to make some sacrifices in the short term, then you can use house hacking as a serious wealth building tool and even a stepping stone into further real estate investing.
Let's Work Together
If you like the sounds of what you've just read and want to explore house hacking in Spokane then get in touch and let’s work together to reduce your living expenses and to help you build wealth through real estate.