House Hacking May Be Your Answer to Extra Income
Whether renting or owning, housing expenses are the most expensive line items in the financial budget for many Americans. However, the extra room in your home could potentially equate to extra income if you are interested in exploring house hacking. With the positive cash flow you receive by renting out a portion of your home to tenants, you can save money on expenses like utilities, maintenance, or other related housing expenses. If you decide to use the extra income towards a portion or all of your monthly mortgage payment, it ultimately allows for homeowners to live partially or entirely for free.
Cutting back on housing expenses will also allow any extra income to go towards other financial goals such as saving, investing, or paying off debt faster.
If you are house hunting and want to buy a property that will allow you to house hack, here are some of the property options you should look for:
- Multi-unit properties (also known as multi-family properties)
- Finished basements (Basements with a kitchenette are a plus.)
- Additional Dwelling Units (ADU’s)
- Houses near public transportation or entertainment areas, specifically downtown areas.
- Multiple bedroom houses
- Areas in the home that can easily convert to bedrooms
Recommended: Culture Meets Money guest and real estate investor Mark Jones II talks about his house hacking experience and how it has helped him generate cash flow and pay down his mortgage. Tune in here.