Owning a home is not just about building equity and creating stability for your family, it can also be used to bring in extra income and decrease costs! This strategy of using one's house as an asset has been gaining notoriety among homeowners who want the most out of their property, known as "house hacking." House hacking provides numerous benefits such as increasing cash flow and reducing overhead by taking advantage of all that a residence has to offer.
Rent Out a Room
Homeowners have the capacity to house hack by renting out a spare room in their residence. If there's an extra bedroom or living space that you're not using, this is an ideal way to make additional income monthly and offset some of your costs related to homeownership like mortgage payments, property taxes, and bills.
Build an ADU
Another way to house hack and increase your income is to build an Accessory Dwelling Unit (ADU) on your property. An ADU is a small, self-contained unit that can be rented out to tenants. This can provide a steady stream of rental income, and since the unit is on your property, you can easily keep an eye on things and handle any issues that arise. Keeping up the property will help make sure that tenants stick around longer, reducing vacancy rates and ensuring a stable source of income. ADUs can also be used for other purposes, such as hosting guests or serving as a home office. However, building an ADU can be a significant investment, so it's important to do your research and determine whether it's the right option for your situation.
Buy a Multifamily
If you're interested in house hacking but don't want to share your living space with tenants, you may want to consider buying a duplex or other type of multifamily property. This can be a great way to live in one unit while renting out the other(s) to generate income. Depending on the property and your financial goals, you may be able to cover your entire mortgage and generate extra income each month.
To sum up, house hacking can be a shrewd and lucrative approach for property owners who want to generate extra income while decreasing their living costs. From renting out an extra bedroom to constructing an Accessory Dwelling Unit (ADU) or investing in a multifamily property - the possibilities are virtually limitless! When undertaking this venture, however, it is essential that you conduct research thoroughly; consult with professionals when necessary; and remain organized as well as on top of your duties as a landlord.
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