House hacking allows you to get into the real estate game, and at the same time, have your housing subsidized by roommates or tenants.
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!
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.
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.
1. Tax Benefits 2. Increased Cash Flow 3. Exposure to an Appreciating Asset