When I was a girl, it was called having a Roommate
Have you ever heard of the term House Hacking? If you follow any real estate trend, I’m sure you do, but for those who don’t….it’s purchasing a home you will live in, then rent out another portion of it. Whether it be a room, a whole side of the house (think duplex) or a portion of your home (think lock off or basement apartment) – you essentially have somoene else help pay for your home.
And when I was a girl, it was called having a roommate. Although House Hacking sounds a lot cooler.
In my new email series, I go into depth about how I used the House Hacking strategy to get started in real estate – although I don’t think I was really conscious that I was implementing a strategy of any kind. I purchased a townhouse (full disclosure, I had financial help from parents!) and immediately had a friend move in. Although I had a decent job, was a saver, didn’t spend on unnecessary things….boy did having a roommate take the load off! Not only did this allow me to have help with the cost of living (we split utilities), the rent helped build equity in the property with less out of my pocket and allowed me to save and invest in my companies retirement programs. But that’s not the only way I used the house hacking strategy.
Here are three ways I exercised the House Hacking Strategy to supplement living expenses:
- I had actual roommates live with me – several over the years
- I rented out a room in my house – in both my first home and our home in Colorado – through Airbnb to people coming to the area to visit
- When a flip we completed wouldn’t sell, we furnished it, placed both the investment property and our primary on Airbnb – moving in between the two to cover holding costs
Here are some questions to ask yourself to see if this strategy is for you….
- Does earning income from where you live excite you? Does the thought of having your living expenses paid for – at least some of them – really get the wheels turning?
- Would I be comfortable sharing my space with a friend? A stranger?
- Do I have a room or space in my home that I’m not using? Could that space be converted into a living space that I could rent out? Does that space have a separate entrance?
If the Answer to anyone of these questions is YES then House Hacking may be for you!
If you want to know more about House Hacking – what is possible, what your options are, or if you want to talk through it with someone who has successfully done it multiple ways – do not hesitate to reach out!