
House hacking is the art of making a primary residence out of an investment property, having rental income cover the homeowner’s costs. Millennial Money calls it a way to “use other people’s money (tenant rent) to pay down the mortgage and live for free.”
Of course, this is not a new idea in real estate investing, but millennial buyers may have rebranded it as a solution to a problem afflicting their generation. Younger home shoppers can quickly hit road blocks buying a home. Reasonably priced homes are in low supply and high demand. This imbalance has continually pressed home prices up, making it hard for first-time buyers to enter the market.
Hopeful buyers may read websites that tout house hacking as the best pathway to financial success. The housing market is on a roll; why not tap into the market for income?
Some hold investment properties only as long as they need to. Other home hackers repeatedly buy, building equity as they go and saving rental income for future down payments. As experienced investors can qualify for larger loans, their buying becomes more lucrative over time.
Continue reading “The “House Hacking” Trend: When a House Is a Rental Property Too”