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What is house hacking and how can you benefit from it?

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Want to earn a little extra income but don’t have time for an active side job? If you’re a homeowner (or future homeowner), we have a solution. It’s called “house hacking”.

So basic. What is house hacking? It’s just a catchy term (everyone loves ‘hack’ and alliteration) and means to rent out your primary residence in some way to generate income. This is a concept that has been around for a while, and for good reason. An easy way to make money. This is especially valuable during difficult times.

Before we dive too deep into the topic — I promise it’s going to be exciting — a quick disclaimer: Always check with your HOA or local government to familiarize yourself with the house hacking regulations on your property before you begin.

Advantages of house hacking

Why House Hack? money. cash. village. income. material.

Seriously, home hacking is an efficient and relatively easy way to earn all of the above.

It’s also a great way to get into the world of real estate investing. You don’t need extra capital like buying another rental property. And with your tenants literally next door, it’s easy to address any issues or questions immediately. You can learn more about being a landlord and decide if more serious real estate investing is your jam.

how do you hack a house

As long as you follow local rules and regulations, the opportunities to hack your home are almost endless. Here are some of the most common ways people have leveraged their property for income.

rent a room

If your lifestyle allows it (i.e. you don’t mind sharing your living space with others), renting a room may be the most accessible home hacking option, as you just need an extra room. I can’t.

rent out basement

Is your basement gym underused? It can be understood. Working out is hard. Rent it instead. Even without converting to a full apartment, you can still earn income while maintaining more privacy than if you rented a room.

Airbnbs

According to realhomes.comthere are certain styles that get more profit on Airbnb than others. It depends on the size of the space, other amenities, etc.

What is House Hacking?
Photo: dc_slim/Shutterstock.com

in-law’s apartment

In-law’s apartment isn’t just for in-laws! In fact, they are officially called Attached Housing Units (ADUs) and are defined as a complete apartment (or house) on your property. investedia Say. This can be anything from a backyard tiny house to an apartment in the basement. you can get it back. In addition, property values ​​may increase.

housing complex

a multi-family home According to Bankrate, the building contains from two (duplex) to four (four) separate living units. If you own one, you’ve almost certainly rented out the other unit already. But if you’re looking for homes and have the capital, they’re certainly worth exploring. stern team to find the right one.

Warehouse for rent

Even if you don’t want strangers in your home, you can still do house hacking by renting out unused storage space. For example, you can rent a garage and earn an average of $4,000 per year. StacheThey also report that the RV pad can make over $1,500 a year and the driveway alone can make over $1,000 a year. I hardly ever need to work.

Be selective with your tenants

Depending on your tenant, hacking a home can be fun or devastating, so it’s important to choose carefully. Don’t be afraid to take your time finding the right fit. Please select properly.according to LiveAbout.com, perform background checks, credit checks, and income checks so you can make the right decisions. Ideally, you should have a tenant recommended by someone you trust.

Start with the people who know real estate best

Currently looking for a home and interested in the opportunity to hack a home? stern team to find the perfect opportunity. The Stern Team is a real estate team servicing Wasatch Front focused on helping clients find the perfect home.Earn a 5-star Google rating for 750 reviewsyou know you can trust the experts at The Stern Team.

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