I heard on one of the podcast about someone house hacking. Can I get someone to tell me what this is and how to do it? I'm from the old school. Thanks
House hacking is a real estate investment strategy involving owning multi-family rental properties. It is when you live in one of the multiple units of your investment property as your primary residence, and have renters from the other units pay your mortgage and expenses.
@Bob Okenwa thank you. Multi-family unit and you live in as owner occupied than? Got it
Yup. Live in one unit and rent the others out to pay part of, most of, and possibly all of your living expenses.
Or you can have a casita or ADU (accessory dwelling unit) on the property as I've seen this version of house hacking in my area as well.
Just want to say that house hacking multi-family dwellings is the easiest way to get started in real estate investing. Way back in a day when I graduated college and got my dream job, I lived at home with my parents and saved my weekly pay check for the first year of employment. The second year I went driving for dollars and found a 6 family dwelling owned by an elderly couple that couldn't manage it and didn't want it any longer. I made them an offer, they accepted it, and at 23 I owned my first property. I used my savings as a down payment and received a 1st mortgage from a local bank. I remodeled one of the units, said goodbye to my folks and moved in. I then used the rental income to slowly remodel the entire building over the next 3 years. But I didn't stop there. My second year of employment again I saved my paycheck because the tenants were paying for me to live and I purchased my second multi-family property, a 5 family across the street from me. I continued this plan over the next 5 years at which I had sufficient income to quit my full time job and go full time in real estate investing. By the ten year I owned 200 rental units and a 50 unit mobile home park. SO it works and I would recommend this simple strategy to all people interested in real estate investing.
@Mike Sedlacek wow mike, very interesting and inspiring story there!
I wasn't sure what House Hacking meant but its such a coincidence that, that is what I am doing it right now by living in a SFH and having the remaining rooms rented out to tenants. Hopefully long enough to be able to help me get my second property in due time.