House Hacking: A Lucrative Passive Income Stream for Young Professionals

How are you able to live for relatively cheap or free? You get a house which has rental potential, and rent out your additional rooms or units to other people.

House hacking allows you to get into the real estate game, and at the same time, have your housing subsidized by roommates or tenants.

The Financial Results of House Hacking

I was essentially paying myself $370 in “rent” and banking the gains in appreciation and equity. $370 in rent? That’s unheard of in a metropolitan area such as the Minneapolis / Twin Cities area!

Diving into the Numbers Deeper

Over the past three years, I brought in just over $39,000 in rental income. I didn’t do anything special to earn this money – all I did was purchase a house in a great area and rented it out to 2-3 of my friends.

Other Comments on My House Hacking Experience

Being a landlord and renting out rooms to your friends or strangers can be a good experience, and I’d recommend having a roommate agreement and lease in place for legal and protection purposes.

The Benefits of House Hacking for High-Income Professionals

1. Tax Benefits 2. Increased Cash Flow 3. Exposure to an Appreciating Asset

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