Have you ever heard of house hacking? It’s a way to potentially live for free by making money from your home. Essentially, you find ways to reduce your housing costs and possibly even earn some extra income.
House hacking can help you save on monthly living expenses and build equity in your property. Housing costs are often one of the biggest monthly expenses, with many homeowners spending about 30% of their income on it. So, what if you could lower those costs or use your home to your financial advantage?
Maybe you’ve recently bought an investment property with the goal of house hacking to help cover your mortgage. Or perhaps you have some extra rooms in your current home that you could rent out. Either way, house hacking could save you a lot of money.
When we lived in a traditional house, we tried house hacking by having roommates. The rent we collected helped lower our house payments and boosted our savings. It was a great experience, and it even helped me prepare to quit my job and become a full-time blogger.
House hacking can save you money, make you money, and offset your mortgage and other housing costs. This guide will explain what house hacking is and how you can get started.
### What is House Hacking?
House hacking involves finding ways to make money from your home. You might live in one part of your house and rent out the other parts. This could be a multi-family property, a single-family home, an apartment, or an additional dwelling unit. The goal is to reduce your monthly housing expenses and free up more cash.
### Is House Hacking Profitable?
Yes, house hacking can be very profitable. You might earn enough to cover your entire mortgage and even save some money. However, the profitability can vary depending on your situation. It’s also a good idea to start an emergency fund to cover unexpected expenses like repairs.
### Is House Hacking Legal?
The legality of house hacking depends on where you live. Some places have specific rules about renting out parts of your home, especially for short-term rentals like Airbnb. Make sure to check local laws and comply with federal and state housing regulations.
### Pros and Cons of House Hacking
**Pros:**
– Build home equity
– Lower your housing costs
– Earn extra money
– Gain more financial freedom
**Cons:**
– Loss of privacy
– Potential stress from being a landlord
– Increased wear and tear on your property
### House Hacking Ideas
1. **Rent Out Rooms:** If you have extra rooms, you can rent them out to roommates or through short-term rental platforms like Airbnb.
2. **Multi-Family Home:** Buy a duplex or triplex, live in one unit, and rent out the others.
3. **Rent Out an RV:** If you have an RV, you can rent it out when you’re not using it.
4. **Storage Space:** Rent out unused storage space in your home through platforms like Neighbor.
### How to Know if House Hacking is Right for You
Ask yourself these questions:
– What are my short-term and long-term goals for house hacking?
– Do I have extra space to rent out?
– Am I financially prepared?
– How do I feel about having roommates or being a landlord?
### Is House Hacking Worth It?
Yes, house hacking can be worth it. It can lower your expenses, improve cash flow, and help you save money. The rental income can help pay down your mortgage, possibly allowing you to retire early or buy another property.
Are you interested in house hacking? Why or why not?