It is becoming increasingly difficult to find the ideal place to buy a new home without the area being expensive and not being able to maintain expenses in the future. Sometimes we find ourselves in need to give up and look for a house where we will inevitably feel unhappy. The real estate market is becoming more and more expensive and difficult to acquire for an ordinary American citizen with a desire to be a homeowner, in different parts of the U.S., prices have risen enormously between 20% to 25%, and the idea of purchasing is being simply discarded.
If you are a future buyer who can not afford a new house in an expensive place, we resort to the most viable method which is to rent spaces of a home in that way the only expense is for that defined space and not for the home as a whole. In this way saving money will be easier.
In case you own a house which you can no longer afford to pay the mortgage plus the services, you can apply for House Hacking, by renting the empty spaces of your home, like rooms, basement, attic, through that money obtained, you can cover all the mortgage expenses, and the best of all is that you can generate positive income. Don’t believe us? Just watch.
The success of house hacking lies in finding properties with as many spaces as possible to generate income whether it is additional spaces to the house or an area where a place can be built for rent. We analyze the success of House Hacking through the following strategies:
- Not one, not two
If you cannot find a multi-family property, it is recommended that you get a family property that has as many rooms as possible for rent. Remember that renting a room is less expensive than renting the same property, and both parties (landlord and tenant) will be saving money for the mutual benefit.
- Public transport is important
When you want to apply House Hack, you have to take into account not only the number of rooms or empty spaces you want to rent but also the ease with which your tenants can go outside or around the city. For this reason, it is imperative to locate properties in areas where public transportation is a competitive advantage since no tenant will want to walk to get late to their destination.
That’s why it is recommended to invest in central areas where everything is within the reach of the tenant, these areas are mostly the best parts of the city that will provide you the best of comforts.
- Large-enough complex
The more space you can get in a house, the better the benefits associated with the house hacking strategy, basically a triplex is better than a duplex and so on. The best recommendation is to look for multi-family properties where you can get as many units as possible to rent, no matter if the property is not the prettiest, it will merely help you reduce the payment and get better profits.
Multi-Family properties were designed for house hacking, so the analysis of these properties is fundamental, starting with the area where you want to buy or rent, the scope of public services and the number of single-family properties where few tenants reside.
A real estate agent is the best connection you can have in cases where you want to buy or rent a house hacking property and get the best benefits and save more money.
- Don’t let your basement die alone
This may be the best option, since many landlords tend to build a basement and add basically everything that goes with a property, bathrooms, kitchen, fridge, living room, bedrooms and even a separate entrance; this way the landlord can live quietly in the basement and rent the main space to a whole family while gathering the capital needed to pay the mortgage and save enough money.
This strategy is often sought after by whole families to save money and live comfortably in a wide space, separate from the owner. Properties with finished basements are a great choice for large families.
- Simply put, make more bedrooms
When the property is large enough and only as much as two or three rooms, you can take advantage of it and build more places for a few thousand dollars, with the remaining spaces of the property.
Many homeowners turn to this action because they can get more out of their property by converting living rooms, empty spaces, meeting spaces into perfectly comfortable rooms to rent. The more places the property has, the higher the profit and you can even make a profit after paying off the mortgage.
In summary, House Hacking can be described as the strategy of renting the different parts of your property to generate income which can help you cover mortgage costs, utilities and any other debt you may have on your property. This method is used by those individuals or families who cannot afford a house in an expensive area, so you can use this creative means to make both parties satisfied and achieve the agreed goal.
It is predicted that by 2020 if houses continue to increase in price exponentially, a wave of house hacking may come, and the most viable and economical method is to rent the empty parts of a property to generate and save money, even if a recession comes.