House Hacking to Build Real Estate Wealth

Owning your own home can help you achieve your goals if you want to build wealth. House hacking is when you rent out your home. You can rent out a spare bedroom, a part of your multi-unit property, or live with a roommate. How do you get started with house hacking?

Real estate investing can be intimidating for young people because of the 20–25% down payment required to get a loan. However, with house hacking, a tiny down payment can work. If you qualify for USDA or VA, you have a great advantage. You can get away with 0% down payment although their upfront fees are high.

Other options include a conventional mortgage and FHA loans. Not all houses are “hackable” in equal measures. When buying a multi-family home, ensure that it will still be able to meet cash flow needs should you decide to move. Having roommates so you can cut down on expenses is a great idea but having negative-cash flow will not help much. It is not financially impossible for most people, but it is socially impossible. You need to be flexible and trust people.

However, think of the financial benefits. You will save so much on the mortgage. Even people with families (including kids) can successfully house hack. House hacking requires money. Save up money while living in the house. When you move out you should be able to convert the property into a…