11/30/2023
House hacking means finding ways to generate income from your home. Traditionally, house hacking meant buying a multifamily property, living in one unit and renting out the others so that the tenants pay the owner’s mortgage, and the owner builds equity while maintaining the property. In my case, because finding a multifamily property was so competitive, I bought a SFH and rented the rooms upstairs while I lived in the basement.
Savvy investors have always known that buying a multifamily property – or engaging in some of the other house hacks discussed below – is an easy way to learn about property management and landlording, all while having their housing expenses paid by their tenants.
House hacking is a way to reduce living expenses temporarily, or it can be considered the beginning of a career as a real estate investor. Either way, with the high cost of housing, it’s a method for using an asset you already have to afford their lifestyle, put money into savings or buy even more real estate investment property, all while building home equity.
