The House Hacking Strategies Book: How To Build Wealth And Passive Income For Financial Freedom In Real Estate

By Allen J. Daniels

Do you want to learn about a new way to make money? Would you like to live in your house without having to pay the mortgage? 

Are you tired of the old ways of having rental properties and are looking for something new? If you answered yes to any of these questions, then you are going to want to kee

• Language: English
• Publisher: DTX Publishing Co
• Release date: Mar 22, 2022
• ISBN: 9781088028520

Book preview

INTRODUCTION

Congratulations on purchasing The House Hacking Strategies Book, and thank you for doing so.

The following chapters will discuss what house hacking is and how to get started in this world of real estate. This is something fairly new to the real estate world, but it has caught the attention of many. It’s not very often that you have the chance to get started in a market that isn’t full of competitors.

We’ll start things off by going over what it means to house hack. It seems like an odd term, but once you learn what it is, you’ll understand how it got its name.

Then we will go into the drawbacks of house hacking. I feel this is something that needs to be dealt with right off the bat. We need to know if house hacking would be a good fit for us because sometimes things aren’t. That’s okay. It’s better to figure it out now by reading this than lose money.

After that, we’ll look at the differences between buying an investment property, buying a rental property, and house hacking. A little hint the last two things have some similarities, but one glaring difference.

Next, we’ll go over the first steps that you will need to take when it comes to house hacking. This has everything to do with the financial side of things. If you were hoping that meant you could go look at houses, I hate to burst your bubble. Finances are your first stop.

Then will go over the importance of your team and who should be on it. Specifically, we will talk about lenders and real estate agents. These are the people you will come to rely on the most when starting out.

After that, we’ll talk about getting the property you want and getting the best price for it. This will end up helping you to maximize your profits in the longer run, and it won’t cost you as much up front.

Next, we’ll go over the marketing strategy for your property. To house hack, you are going to have to have renters, so you’re going to need to know where the best places are for you to advertise your rooms.

Then comes the next step in finding renters, the screening of potential renters. This can seem like a daunting task because you want to make sure that you find people who are trustworthy and will pay their rent. Don’t worry, we’ll go over what to look for in a renter.

After that, we’ll start to look into managing your property. Once you have your first renter, you will have officially become a landlord. As such, there is a whole new world of things you will have to do. This still includes managing your finances.

Lastly, I’ll present to you some case studies of people who have been successful in house hacking. I believe this will help to settle any last-minute nerves you may have about house hacking.

There are plenty of books on this subject on the market; thanks again for choosing this one! Every effort was made to ensure it was full of as much useful information as possible. Please enjoy!

CHAPTER 1

THE WORLD OF HOUSE HACKING

If you are curious about investing in real estate, but you don’t know where to begin since you’ve not bought your own home, are you interested in having a passive income but don’t know where to begin? Do you feel like being able to afford your own home is totally out of the question? Do you want to own your own home, but you know that there is no way this would fit into your budget right now? Keep reading to see how house hacking might be the answer to your question. It just might be the answer to help reduce your expenses while putting you in a real estate investing career.

Normally, house hacking means you will purchase a property that can house several families; you will live in one unit while renting the other units to tenants to help pay for some of the costs. It is a strategy where you earn income by renting out part of your residence. This strategy began in places where it got too expensive to be able to actually own a home while still being able to live comfortably. Most homeowners found that it cost too much to live where they wanted to live or close to where they worked and still be able to pay all their monthly bills. The solution to their problem was to convert their house into a multiunit property so they could live in one unit while leasing the others. By doing this, they were able to offset their expenses with the income from their tenants. If you don’t have the finances to purchase a multifamily unit, you could rent out a few bedrooms, convert your garage into a living space, or even put a tiny house on your property. If you do decide to just rent out rooms, you will have to draw up an agreement for the use of the other living quarters throughout the house like the living room, kitchen, bathrooms, etc.

In many places across America, the prices of houses have skyrocketed. This normally happens after wage increases go up in the more expensive cities. This normally doesn’t cause problems for people who are on the upper end of the pay scale who are earning the best wages, like executive-level leaders, top salesmen, etc. It can cause problems for the average worker who is trying to provide a decent living for their families while trying to stay out of a two-hour commute each way.

So what do these hard-working, blue-collar people who work in industries that are vital to the infrastructure of the area and are the city’s financial backbone? What can these people who have put their occupational roots into a large city and are experiencing some wage increase but aren’t seeing enough of a wage increase to get by? Are these people doomed to live a life commuting most of their day away without ever getting ahead?

Well, they might if they don’t learn about the strategy of home hacking that can open the door to homeownership in the more expensive areas while letting people who are willing to put forth some flexibility and creativity to create their own financial wealth.

House hacking is a term that was created by a podcast called BiggerPockets and its host Brandon Turner. Even though Brandon did come up with the term, this concept has been around for a very long time. Even though this idea isn’t a new one, the application’s popularity is. Since housing keeps slipping through most people’s fingers, home buyers have become more creative and are finding new ways to have their own homes without destroying their budget.

WHAT IS IT?

Basically, house hacking means you find creative ways to find income within your home.

To put it simply, the strategy of house hacking involves renting parts of your main home to bring in some income that you can use to help you pay your monthly bills and mortgage. If you can do this the right way, it helps you live in the more expensive places totally free or help you bring in passive income by owning the home.

House hacking can also be done by purchasing a multiunit property living in one unit while renting out the other units. But as stated above, you can do this with any property. You could rent a spare room through VRBO or Airbnb to bring in extra income.

This can be an extremely lucrative strategy and a big step toward getting some financial freedom. It could help you get rid of or reduce your recurring mortgage payments. You just have to make sure you charge enough rent so that it covers your monthly utilities and mortgage payments.

House hacking is a way for people who can’t afford expensive homes to get creative to bring about this goal. This is a way you can squeeze all the value out of your home to help you financially. House hacking isn’t free; you are going to have some costs involved. To save on finances, you need to be willing to put in some work and sacrifice some of your comforts.

House hacking is getting more and more popular these days. It lets people cut down on their commute and housing expenses a lot. If you have always rented, it lets you begin accruing some tax incentives that are associated with owning your own home, like tax deductions on your mortgage payments. For most Americans, housing expenses if the biggest expense in their budget. By using house hacking, they could improve their budget tremendously while freeing up some money for paying their mortgage off faster, investing, or saving.

It helps you learn how to become a landlord. Because you will be living in the same property, you will be close if any maintenance problems pop up or you have a problem with a tenant. If you are new to investing in real estate, you will