Did you know that you can generate revenue by renting out a part of your house? By doing this, you can equalize the amount of your mortgage and expenses related to owning or buying a house. This strategy is called house hacking, which can be a good real estate investment . You’ve probably heard the word duplex? How about the triplex? Or even fourplex? These are some of the terms used by other people, but it basically means owner-occupied multifamily property, and they are a great option as a housing hack.
House hacking can also happen in single-family houses by renting out some parts of your home like the basement, garage, or bedroom. There are so many ways to house hack, especially if you’re the investor, you live in the property, make few renovations, and put it on the market after a few years. It can be wise to spend a few bucks buying a small multifamily house to live in one part and put the other part on lease. This is making money, and you can even live for free in that property.
There are other benefits to doing this. Some real estate investors and newbie homebuyers can have experience being a proprietor with a low cost of money and risk. You can get valuable experience doing tenant management, reviewing and making rental contracts, lodger screening, and even advertising the vacancy on your property.