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Jun 25, 2024 • PropStream

New Academy Course—House Hackers' Toolkit: Leads, Data, and Strategies

Important Note: Before embarking on your house-hacking journey, we recommend doing due diligence to ensure it’s a legal practice in your region, seeking professional advice, and carefully planning your investments according to your individual goals and risk profile.

Have you ever dreamt of a strategy that could help you build wealth while providing a roof over your head? 

Well, you can. The strategy is called “house hacking!”

What Is House Hacking?

Essentially, when you house hack, you provide a separate residence on a property you own and rent it out to a tenant. 
Full Definition

House hacking allows homeowners to turn an ordinary expense—housing—into a source of income. By strategically leveraging their primary residence or investment property, they can slash their housing costs or even turn a profit.

Ways to House Hack

House hacking can be done in various ways, such as:

  • Converting a section of your home (e.g., attic, basement, garage, or even a room) into a separate residence
  • Adding an entirely new structure to a piece of property you own and renting it out (e.g., an ADU or “Accessory Dwelling Unit”)
  • Purchasing a duplex, triplex, etc., and living in one unit while renting out the others

 

If this strategy appeals to you but you’re unsure how to identify the most profitable and practical opportunities, we have just the thing for you.

New Course Alert—House Hackers' Toolkit: Leads, Data, and Strategies

In this course, you’ll learn:

  • The basics of house hacking (what it is, the benefits, methods, who it’s best for)
  • How real estate data can aid you in your pursuit of properties to house hack
  • Legal considerations (respecting local laws and regulations, obtaining necessary permits, avoiding HOA violations)
  • The potential of utilizing ADUs for house hacking and how you can use PropStream’s ADU Calculator successfully

And so much more!

Enroll for Free Today

With housing unaffordable for many people and demand outpacing supply, getting creative with how you get your buy and hold career off the ground is vital.

Let us share the most valuable resources for making savvy house-hacking decisions: Enroll in House Hackers’ Toolkit: Leads, Data, and Strategies today!

 

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Frequently Asked Questions (FAQs)

Can you make money house hacking?

Your ability to earn an income from house hacking depends on your property expenses (mortgage, utilities, cost to maintain the property, taxes, etc.) and how they stack up against the monthly rent you can gain from the property.

For the best chances of earning an income by house hacking, use PropStream’s Analytics tools and Calculators to find the most profitable opportunities!

What are the risks of house hacking?
House hacking comes with several risks, so proper tenant screening, research around the legality of house hacking in your region, and a thorough contract are vital. Common house-hacking risks include:
  • Vacancy and Tenant Issues: Like any rental property, vacancies can occur, leaving you responsible for covering mortgage payments or other expenses. Additionally, dealing with difficult tenants or unexpected vacancies can lead to stress and financial strain.
  • Property Damage and Maintenance Costs: Renting out parts of your home or property increases the likelihood of wear and tear. You may encounter maintenance issues or property damage caused by tenants, requiring time and money for repairs.
  • Regulatory and Legal Challenges: Depending on local regulations and zoning laws, house hacking may face legal hurdles. Failure to comply with ordinances or homeowner association rules could result in fines or legal action.
  • Personal Privacy and Lifestyle Adjustments: House hacking often involves sharing living space with tenants, which can intrude on your privacy and lifestyle. Some individuals may find it challenging to adjust to the presence of tenants in their homes, leading to potential conflicts or discomfort.
  • Liability and Insurance Considerations: Renting out part of your property exposes you to liability risks. Adequate insurance coverage is essential to protect against potential accidents, injuries, or property damage that could lead to legal claims.
Can you house hack with a duplex?

As long as local laws do not prohibit this method, duplexes can be an excellent option for house hacking!

Can you house-hack a single-family home?

Your ability to house-hack a single-family home will depend on local legislation—research zoning laws in your region to learn more.

What is the 1% rule?

The 1% rule is a guideline commonly used by real estate investors, including those involved in house hacking, to assess the potential profitability of a rental property. The rule suggests that a rental property's monthly rental income should ideally be equal to or greater than 1% of its total purchase price or investment cost.

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Published by PropStream June 25, 2024
PropStream