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House hacking is a contemporary way of life that draws heavily from the past and reinvented using modern home-sharing services. Your grandparents might have owned an apartment with two families in a city before they were in a position to gather the funds to move to the new suburbs built in the 20th century. Or, on the other aspect, you could have lived in your single-family home all your existence, but you are now searching for hacks to your house to make passive income streams that will help create a flexible retirement plan. In either case, your journey with house hacking can provide additional income and allow you to experience the lifestyle of a landlord.

Why House Hack?

House hacking can be a means to lower living costs temporarily and could be viewed as the start of the career path of an investor in real estate. In either case, considering the costs of renting, house hacking is a way to make use of an asset you already have to fund your lifestyle, or put funds into savings or purchase an additional investment in real estate property while also creating equity in your home.

Buying A House To Hack

It’s no more difficult to buy a multifamily home than it is to buy a single-family house. So long as you stay in the house, it’s your primary residence, and the mortgage will be priced in line with it. Residential mortgages are considered less risky than investment properties or loans for non-owner-occupied properties. If you own your home and have resided at the property for over one year, you can lease it out and then relocate to a multifamily house.

House Hacking Strategies 

We discovered that certain things are to be looked for to increase our chances of finding the right property to meet our needs. I’ve also learned to instruct others to be aware of these to increase their chances of success. The whole idea behind the successful House Hack will be to locate homes with as many rooms as is possible that can be utilized to generate income. This could be extra properties in a multi-family and additional bedrooms in a single-family home and even additional spaces that can be turned into bedrooms or other units that could be transformed into living spaces. The best deals include combining these methods, resulting in enormous value for homeowners. If you are evaluating a home as an opportunity for a House Hack possibility, Look for these characteristics:

1- Multi-Family properties: Anything with at least two units is considered a positive, and more units are superior to fewer units. A triplex is usually better than a duplex, and a fourplex is more efficient than a triplex. Make sure you set up a search for homes with multiple families and look over these properties to figure out which ones will provide you with the most affordable housing cost over the year. House Hacking will aim to cut down your monthly payment as much as possible and not purchase the gorgeous home. Multi-family properties were specifically made to House Hack, and we always begin there. When it comes to studying these properties, there are some things to consider. First, the community in which they are located is vital. Every multi-family home is not made in the same way. In certain areas, multi-family homes are located in specific areas “zoned” for multi-family housing. This means that there’s likely to be a greater number of tenants in the area that is generally thought to be not a good investment for people looking to invest in the area.

2- Finished basements: Sometimes, you’ll find gold when you come across a home located in an area that is zoned for single-family homes with a basement that’s been transformed into separate living spaces. A lot of homeowners complete their basements and add bathrooms with kitchenettes as well as multiple bedrooms. If the house’s basement is equipped with an independent entrance, that’s more desirable. These properties allow homeowners to reside in the basement and let the main area to the family. This can allow the homeowner to live on their own while also creating equity and paying off their mortgage. If the homeowner is children, they may let the finished basement to other families and make easily rented money without sharing their home with others. When searching, basements that are finished are among the most important things to search for.

3- Additional Dwelling Units { ADU}: Additional Dwelling Units can be considered constructions that are added to the property generally located in the backyard. Electrical, plumbing, and other amenities required for a living are accessible. They are also known as “in-law units” and “guest houses”.The ADU is a space that can be lived in or rented out to earn additional income. ADUs are an excellent feature to consider when buying an existing House Hack property.

4- Multiple Bedroom Houses: If you cannot locate multi-family homes, your next option is to locate a single-family house with as many bedrooms as you can. Since bedrooms are the ones you’ll lease out, it’s crucial to consider homes with the greater area, but fewer bedrooms aren’t always more desirable. Similar principles apply to multi-family homes. Three bedrooms are more desirable than two, and four bedrooms are superior to three. Make sure you look at houses with the highest number of bedrooms in your budget and then move on to the next one. Sometimes, purchasing a house with an extra bedroom for rent will make your total cost of housing considerably less.

5- Houses With Adequate Living Space: While the number of bedrooms is the first thing we look for, we also want to concentrate on houses with adequate living space to allow your tenants to live comfortably. Lofts in the upstairs of homes and family rooms, dining rooms, breakfast spaces, outdoor deck areas, and other amenities that allow guests to relax and not be restricted to bedrooms can be attractive selling points that permit you to charge more rental and retain tenants for a longer time. The larger houses with bathrooms and bedrooms are the most desirable house Hack opportunities. Combining this with extra living space can allow you to secure more long-term tenants that are reliable and will have smoother all-around.

6- Houses Near Public Transportation: If you’re looking at something you can House Hack, it’s important to remember that the number of bedrooms/units is crucial, but it’s not necessarily the only important factor. The fact that you have all this rental space will not benefit much in the absence of anyone to let it out. It would be best to look for properties in desirable town areas with solid economic foundations. All of this should be close to public transportation that your tenants will be looking to live in the area.

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