Are you ready to start investing in real estate? It’s one of the surest paths to wealth, as it’s an asset class that is always in high demand.
It’s also the asset class that creates more millionaires than anything else.You don’t even have to be a high-income earner.
You can be a regular person with a regular job and started bringing in rent checks today. How so? With home hacking.
House hacking is a popular strategy for new and young investors looking to get in the game with the least amount of money possible.
Keep reading below to see how this strategy can help you become a real estate investor very soon.
What Is House Hacking?
House hacking is a concept of combining your primary residence with a rental unit. The easiest way to do this is by purchasing a duplex, triplex, or quadplex.
You would then live in one unit and rent out the remaining units. The rent that comes in would at least cover the expenses of the property, which include mortgage, insurance, and property taxes.
If you’re lucky, you may also earn a profit, helping you to get paid to live in your own home.
You can also house hack by buying a single-family house and renting out rooms, which is usually only done by a single person as opposed to a family.
Or, you can build out an apartment in the basement. Some houses even have mother-in-law suites or casitas which are perfect for renting out.
Benefits of Home Hacking
So why is house hacking a good way to start investing in houses?
It’s the perfect real estate investing strategy for those that don’t have a ton of capital and can’t afford a 20 percent down payment on an investment loan.
It’s also a low-risk rental property strategy that will give you hands-on experience with managing a rental and tenants.
When you’re ready to buy a new home and move out of your unit, you just need to rent it out and you increase your monthly revenue.
Getting Started With House Hacking
The most important thing to do when trying to buy an investment property for house hacking is to find the right property. You have to be picky.
Figure out what neighborhoods in your market have the types of homes you are looking for. Then, find every website that focuses on your local market. For example, you can browse property listings in Louisville, KY here.
Then, find whichever residential mortgage program works for your situation and apply. Most house hackers prefer the low-down-payment offered by FHA or VA loans if they qualify.
Start Investing for Less
Home hacking is an effective and affordable way to start investing in real estate sooner rather than later. You can acquire a great property for a relatively small amount of money.
As long as you’re willing to live in your investment for a period of time, it’s one of the best beginner strategies available.