House hacking is when you create income from the property you are living in. The easiest way to do this is by getting a roommate!
House hacking is when you create income from the property you are living in. There are a lot of strategies to accomplish this goal, but today's article is about the easiest way!
Let’s look at the numbers and why this might be a good option for you:
If you have $30,000 down payment, you could put 5% down on a $600,000 property, this could get you a comfortable home or condo in a decent area.
For this example, let’s say your interest rate is 4%.
So, your $600,000 property MINUS your $30,000 down payment EQUALS $570,000, 30 year mortgage. That makes your monthly payment $2,721. Next, get a roommate and charge them $1,200 / month rent. Your payment is now $1,521 / mo.
SummaryFor a lot of people I know, they are already spending this amount or more on rent!
Like I said, there are a lot of ways to House Hack, but all of them increase your net worth over time. If it’s possible for you to trade your monthly rent payment for a monthly mortgage payment WITHOUT drastically changing your lifestyle, contact me to look at all your options.
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