Do you want to start investing in real estate but you don’t know how to start? House hacking is the key!
House hacking works like this: You should buy a hοuse with a lot of bedrooms, two, three or four. Live in one of the bedrooms and rent the rest of them. With the money you will earn from the rent, make the repairs that the house needs. After use the money you saved to move out and buy another property. Repeat! Of course it’s not an easy thing! It’s a business that needs preservation and vigor. You must collect the rent and you must live with stranger that sometimes can be difficult. However, sometimes the owners of multiunit property can have tax deductions for depreciation of the rented portion of the property. And some of the multiplexes qualify for loans with favorable terms. There are many different ways to be involved in real estate. House hacking is a really interesting way because of the training and the offsetting of your costs. It’s the appropriate way for young investors and especially for those who are single and have a flexible lifestyle. Sometimes the ease of buying a multiplex property depends on the lender. In some occasions, people who want to buy a property should qualify for it on their income. That can be an obstacle for beginner investors in some markets. Of course you can try starting this business alone but always you can ask for help from some experienced real estate agent.