House Hacking: How To Live Rent Free
If you’re interested in getting into real estate investing and want to live
, then house hacking might be for you!
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is when a person rents out a room or rooms in their
and uses the monthly rental income to pay a part or even all of the
monthly mortgage paymen
t, thus living
Benefits Of House Hacking
Living Rent Free
The first big benefit is that house hacking provides a way for a person to be rent-free!
Lower Down Payment
The better a person’s credit score, the lower their down payment can be. Additionally, they can also qualify for a low principal interest rate.
House hacking is a great way to
a real estate portfolio due to the low down payment. However, an owner must live in the property for
at least one year
or face an extreme penalty.
Is House Hacking Legal?
There is nothing
about an owner living in one of the units of their property. However, it is
for an owner to convert a garage into a bedroom for
creative house hacking
Real Estate Financing
Aside from working with a hard money lender, I strongly recommend any future successful real estate investor to build a good relationship with a
local in-state banker
Federal Housing Administration Loan
is a Federal Housing Authority
lenders from any losses if a borrower defaulted on their mortgage payments.
The government also ensures VA loans but are designed
for U.S. military members and veterans. This type of loan requires
no money down
include any mortgage insurance.
can have an even lower down payment requirement compared to an FHA loan.
How To Calculate A House Hack
it’s essential to calculate the cash on cash return to ensure that all expenses are accounted for in the rental income.
Monthly Mortgage Calculator
Having an idea of the monthly mortgage payment will give you an idea of how much rent you will need from the tenants to live
House hacking is one of the most straightforward real estate investing strategies and a great way to start building wealth, increase your net worth, and reach financial independence!
Swipe up to Read More on House Hacking: How To Live Rent Free
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