What is House Hacking?
I've seen a lot of posts that talk about house hacking, but I don't know what that is. Can someone help point me in the right direction about learning more about that?
@Ezekiel Joseph Berman living in a house with other people who also pay rent. Whether it’s renting out rooms in your home, having roommates, or a duplex where you rent the other side out. The income offsets or covers some or all of your mortgage allowing you to save money faster.
To me there are two definitions that people tend to know one or the other. What appears to be the "classical" definition is to buy and live in a property, then moveout and either rent out the property and/or sell it for the profit tax free using sec121 exclusion. Seemingly more common, probably because of the market conditions, is to rent out just rooms in your house. This is far more complicated tax-wise and socially.
Hello @Ezekiel Joseph Berman
Welcome! Not sure if you seen yet, there will be a bootcamp on househacking, definitely check this out:
Happy to chat. Based here in KC. Most people go FHA when house hacking or low % conventional. You could buy a multi family and rent out the other units, buy a home and rent out the rooms, buy a home and update then refinance or use a HELOC, or rent a home out after you lived in it for at least a year
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
When you’re collecting enough income from your property to live for free (pay off your mortgage)