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For some, house hacking is the key to getting started in real estate; for others, it's just a smart way to build cash flow into an otherwise uncooperative rental market. Wondering how to get your foot in the door? Here's what you need to know.
The term "house hacking" was coined by Bigger Pockets, but in general, the practice has been going on for as long as people have been owning and renting properties. House hacking refers to renting out a part of your primary residence. Generally, that means owning a duplex, triplex, or quadruplex, living in one unit, and renting out the rest. For some, it means renting out one or more rooms of a single-family residence. In an ideal scenario, house hackers can essentially live for free--allowing the rental income from the space they rent out to pay for the mortgage and maintenance of the entire property.
As with any investment, the viability of house hacking depends on the market in your area. But for many who want to get into real estate investing but haven't yet taken the plunge, it's a smart step.
Step one: talk to a lender. If you can get pre-approved for a single family residence, you can get pre-approved for a duplex (or larger).
Already own a home? Consider renting out an extra bedroom, or finishing the basement to rent out as an ADU. And even if you don't net massive positive cash flow at first, you'll massively offset your own cost of living, while gaining valuable experience as an investor and property manager.
Destin Lowery has been selling Destin and the Emerald Coast for over 23 years!!! One of her Top Mentors, David Collins, who is now the Broker/Owner of her new reality brokerage is a pioneer in the industry!!! She received her Real Estate license from him in August 1999. Destin always believed that Learning from the Best is key in Real Estate. Destin’s gives credit for her drive and love for Real Estate to her Father and Mother. If you are looking to Buy or Sell in Destin or the Emerald Coast, Destin Lowery is your girl to connect with!!!