House Hacking
House hacking is arguably one of the best & potentially easiest strategies to implement to greatly reduce your living expenses and turn a liabilty into an asset.
House Hacking is a strategy that involves becoming a landlord & renting out portions of your primary residence to generate income that is used to offset the cost of your mortgage and other expenses associated with owning a home. Either resulting in a a positive cashflow situation or greatly reducing your expenses.
Depending on your overall situation, this process may change:
If you own a home already do the following:
Reflect on your current situation: Is there any way to take a portion of your home to create and generate revenue: renting out bedrooms, developing your basement, renting parking stalls, etc. If so, see the steps below.
If you have yet to own a home, do the following:
First and foremost, we pre-approved
Put together your power team - see our steps for getting started blog
Begin your search for properties require work, can be appreciated through forced appreciation (the act of increasing the value of a property through work such as renovating a basement, or whichever).
Once a property is sourced. Get the property under conditions with a due diligence period & then form your due diligence, review ARV, walkthrough your contractors, complete your research for market valuations, etc.
The overall steps for house hacking are:
Assess current or prospective expenses such as property taxes, mortgage, utilities, repairs and maintenance.
Determine potential revenue such as renting out bedrooms, adding a secondary suite, doing air bnb or similar.
Calculate your expenses and revenue, take the total expenses and reduce your income. You’ll be either at a negative or positive situation, regardless, you will have reduced your expenses and at this point, you can determine if suitable for you.
Begin the process.
