High real estate costs can affect your ability to own a home. This is a reality that many home seekers face. However, all is not lost. There are strategies and tips to help you enjoy living in an expensive city, without paying the cost. Below, we will review one legal way to not pay for your rent.
House Hacking: Rent out Portions of Your Home
If you have never heard of house hacking, keep on reading. House hacking is a strategy where you rent out portions of your home, while you live in it. Of course, the purpose is to offset the cost of your mortgage and associated expenses.
Benefits of House Hacking
There are some benefits when you do house hacking. It provides an opportunity for you to live in an expensive city for free; this is because the total rent that you receive will be greater than your mortgage. So, you get to enjoy a high return on investment.
Drawbacks of House Hacking
There are also a few drawbacks of house hacking. House hacking is becoming more popular. Finding a suitable home can take lots of research and time, as suitable houses do not usually stay available for long. You will also need to have sufficient available finances to grab the home of your choice. On top of that, you will have to share your space with others. So, this means that you might need to share common areas like the kitchen, bathroom, and living room. You might only have a wall separating your room from your roommate’s room. Overall, you will need to decide if these are sacrifices that you are willing to make, in order to save money.
How to Get Started with Rent-Free Living
Research the real estate market for your area to determine the best options for house hacking. Several options for house hacking are below:
- Multifamily homes that are easy to split into separate rentable spaces
- Homes with finished basements that are move-in ready
- Single-family homes with multiple bedrooms
- Homes with rooms that can be converted into bedrooms
So, if you want a way to live rent-free in your own home, consider house hacking. You can have roommates pay your mortgage while you enjoy living in your favorite city. While it might take some time to find the right home and you will need to give up some of your comforts, house hacking might work for you.