House Hacking
Definition:
House hacking is a real estate investment strategy where an investor buys a property, lives in one part of it, and rents out the other parts to generate income. This allows the investor to offset their mortgage and living expenses while building equity. House hacking is commonly done with multi-family properties, where the owner occupies one unit and rents out the others.
You can use your Picket account to find and analyze great house hacking opportunities
🔍 Did You Know?
House hacking can be a great way for first-time investors to enter the real estate market with lower risk, as they are both the owner and tenant.
Examples:
Example 1:
A buyer purchases a duplex, lives in one unit, and rents out the other unit for $1,500 per month. The rental income covers most of the monthly mortgage, effectively reducing the owner’s living expenses.
Example 2:
An investor buys a four-bedroom house, lives in one room, and rents out the other three rooms to roommates. The combined rental income covers the majority of the mortgage, allowing the investor to live for free while building equity.
Why It’s Important:
House hacking allows individuals to invest in real estate with less financial burden while generating income from tenants. It’s a popular strategy for first-time investors who want to start building wealth through real estate without the high costs associated with traditional investments.
Who Should Care:
- First-time homebuyers looking to offset mortgage costs.
- Real estate investors interested in low-risk, income-generating strategies.
- Lenders offering loans to owner-occupants who plan to house hack.
The open real estate company
Picket is on a mission to make real estate open, efficient, and fun for all
Try Picket
Picket Team
Create Your Picket Account
Open {pricing} API
Already have your own system? No problem. Try Picket's API instead.
Developer Docs
