How do you make a $450,000 mortgage feel like $250,000? The answer is house hacking, or finding a way to make parts of your home rentable.
One of these ways involves finding a property (usually a duplex, triplex, or fourplex) where you can live in one unit and rent the other(s) out. If you live in a fourplex and occupy just one unit while renting the other three out, for example, you’re drastically reducing your mortgage. Not everyone can make this situation work, though, and that’s understandable.
The next form of house hacking is finding a property that has either a split floor plan, a guest house attached to it, or areas like a detached garage that you can convert into livable space and rent out.
Making a detached space livable requires a lot of work, and it can get expensive too, but if you find a home near the $450,000 price range and find a way to rent out its additional space, you can drastically reduce your mortgage. It’s also a great way to leverage your space. If you watch HGTV, you know that it’s a popular trend among East Coast properties to have lower-level living areas converted into rental units. The rental market is really strong, and there are many different kinds of people who’d find your living space valuable.
The other way to go, obviously, is to turn your additional space into an Airbnb. The return on investment is huge, but, again, it requires a ton of work. With all the people checking in and out, you’ll also have to deal with a lot of cleanup, so be prepared for these types of things and make sure the numbers make sense.
If you’d like to know more about house hacking or you have any other real estate questions for me, don’t hesitate to give me a call or send me an email. I’d love to help you.