We couldn't just let show 20 pass without doing something special to celebrate. So we decided to cover one of the most popular wealth building strategies that our guests have consistently talked about. This week we dig deep into "house hacking" and what makes this strategy so powerful for young investors
What is "house hacking"
What types of properties can be hacked: room hacking (renting out rooms) vs house hacking (renting out additional units in a 2-4 unit property)
Why loan terms are favorable towards house hacking (hint: you are financing your primary residence)
Why use this strategy?
Lower down payment
Eliminate or lower your share of the mortgage payment
Save money to buy your next investment
Timeline to buy additional properties
Depending on your loan terms, you may only be required to live in the house for 6-18 months. During that time, use the savings or cash flow to save for another down payment. Then rinse and repeat!
Examples of why this strategy has a "snowballing" effect on wealth generation
Once you buy one house, you should be saving money, but when you move out of that house and rent the room or unit you were living in, now that first property is making you even more money.
Steps to get into house hacking:
Talk to your mortgage lender to understand how much money you are qualified to spend
Decide what type of property you want: a house with extra rooms or a 2-4 unit property
Find a real estate agent (We can help! Reach out here and let us know where you are looking)
Go out and start looking at (a lot of!) properties
Analyze numbers for each property and don't forget to factor in utilities
Where to Get In Touch