Episode 128: Learn how to hack your housing and how to become financially independent by capitalizing on the real estate market with Bradley Labrie.
What Is House Hacking?
House hacking is when you purchase a home or rental unit, living in one area and renting out the rest. This can be achieved either in a multi-unit complex or a single-family home. Some house hackers take this to the next level by renting out driveway space for parking or garage space for storage.
The main goal of house hacking is to have someone else pay your mortgage.
A 203K loan is specifically for funding home improvement at a low-interest rate. The benefit is that you, as the borrower, have a great mortgage for making improvements and the area benefits by being gentrified.
How Does House Hacking Improve Savings?
When you use house hacking, you are able to redirect the funds you would spend on housing toward savings. This allows you to save at a higher rate and retire earlier.
House Hacking Tips
There are a lot of great ways to hack your housing. Here are some of the best house hacking tips:
Force appreciation by making upgrades. This will also help you make your home more cost-effective.
Pay your mortgage on a weekly basis rather than a monthly basis for an extra payment each year that will help you pay down the mortgage quickly.
Put the money you would be spending on a mortgage into savings to improve your savings rate. This also creates an excellent buffer in case you lose a tenant.
Find an investor-friendly real estate agent to start to build a house hacking team.
Learn more from Bradley by listening to House Hacking Success.