fbpx
//The Definitive House Hacking Guide: Begin Investing in Real Estate

The Definitive House Hacking Guide: Begin Investing in Real Estate

The Definitive House Hacking Guide: Begin Investing in Real Estate

House hacking is considered to be one of the most fun ways to get started in real estate savings. It is an approach to live for free, or almost free by making a minimal multi-unit rental property in your principal property. In this regard, your tenants fundamentally aid you in paying for your house expenses.

The idea of house hacking is plain. But basically implementing a house hack and optimizing your personal advantages can be a bit complex. Looking for a great deal, saving the down payment, obtaining a mortgage, dealing with taxes, maintaining the tenants can seem a bit overwhelming.

House hacking, definition. House hacking is when you purchase a tiny multifamily real estate property, live in one unit, and have the other units rented by tenants. The property utilized for house hacking is a multifamily property; it can be a duplex, triplex, or quadruplex. It can also be a single-family house or even creative minds can use a garage or mobile homes. The income from the rental units can basically shoulder for some or all expenditures while you basically live there. Then, as soon as you move out, the property can also become an instant and efficient long-term real estate investment. One can personally benefit from house hacking.

House hacking is a perfect housing option for young property owners who are willing to extend extra effort to learn how. If you begin with house hacking as a young investor instead of the traditional property options, you can generate much wealth throughout the years. This is because of the principle more commonly known as “opportunity cost”. We all know that housing or property is regarded as one of the biggest expenditures of every budget, so if you can be able to cut that expense, and save a significant amount of money, you are treating yourself with a big head-start and paving your way towards becoming rich and spend your hard-earned money while retiring early.

BENEFITS OF HOUSE HACKING. The first huge advantage of house hacking is that it can lessen your housing expenses, which is considered the main part of the household budget. Statistics have shown that 19.2 percent of the average expense of an American household was earmarked to housing. The specific average is around $900 dollars per month. In Canada, the actual housing expenses were around $1500 dollars per month. Well, these expenditures will be a bit higher as compared to these figures in some areas like the state of Texas, which makes house hacking a lot more important.

However, there are other advantages to house hacking. We listed some of them:

Occupants can avail of the best terms in financing. The owner-occupant has the lowest rate of interest and more enticing terms as compared to investment financing. If you maintain your unit as a long term rental, this is a big benefit as you can maintain the owner-occupied loan in place even after you move out of the complex.

Minimal down payments can be attained. Smaller down payments of zero to six percent are possible with programs like FHA and VA loans. Traditional investment loans require a down payment ranging from 20-25%.

Learn the art of real estate investment. House hacking is a combination of an investment and a residence. You live in the unit while learning to invest. Well, everyone makes mistakes during the process of learning, but it is a bit easier to recover when you are personally hands-on.

Smooth transition to real estate rental units. When you reside in a unit, you get to know the feel a lot. You also get to know the class of tenants your property entices. So, as soon as you move out, you will have an enhanced comfort level with the house and your tenants, being the landlord. With your loan that has low interest, you will likely come up with the best possible cash flow from the property as soon as it gets fully rented.

If you are looking to move to Dallas Texas and need an expert to help you find the right neighborhood, contact us today at ReByKaylee.

If you are looking to move to Dallas Texas and need an expert to help you find the right neighborhood, contact us today at ReByKaylee.

Kaylee McMahon

Apartment investor/ TREC® Brokerage LLC Owner c: 469-990-4627 (text or call) www.rebykaylee.com

kaylee@rebykaylee.com IG: Rebykaylee

By | 2021-02-08T11:47:49+00:00 February 3rd, 2021|Uncategorized|Comments Off on The Definitive House Hacking Guide: Begin Investing in Real Estate

About the Author: