House hacking is a strategy for buying a multi-family property, such as a duplex, triplex or quadplex, and living in one unit while renting out the other units to help offset the cost of ownership. This can be a good way to get started in real estate investing, as it allows you to build equity in a property while also earning rental income.
Here are a few things to consider if you're interested in house hacking a multi-family property:
- Financing: When you buy a multi-family property, you'll need to take out a mortgage to cover the purchase price. You may be able to qualify for a larger mortgage if you can show that the rental income from the other units will help offset the cost of the mortgage.
- Location: Look for a multi-family property in a location that is attractive to renters. This could include areas with a strong job market, good schools, and access to public transportation.
- Management: As the owner of a multi-family property, you'll be responsible for managing the units and finding tenants. You may need to set aside time to handle maintenance and repairs, as well as to advertise and screen potential tenants.
- Legal considerations: Make sure you understand any legal requirements or restrictions that apply to rental properties in your area. This could include zoning laws, landlord-tenant laws, and building codes.
If you are just getting started in real estate investing and your circumstances can allow it, this is always my first suggestion to people on where to start if they haven't defined where they would like to start. It is one of the fastest ways to build wealth, especially when just getting started.