5 Reasons to STOP renting and START House Hacking
#1 Using OPM (Other peoples money) for your gain.When you rent, your landlord is using OPM, which is your rent money to pay down their mortgage on the property while gaining equity or pocket that money as income.
When you stop renting and start house hacking you not only get to keep your money but now you become the real estate tycoon and have other people pay down your mortgage and which leads me to number 2 - earning money while you sleep
#2 Earning money while you sleepAs stated before, renting does not give you this benefit, nor does buying a house the tradition way.
House hacking - it’s a hell yes!!! Essentially you are earning passive income which is income that doesn’t not require you actively inputting time and energy to get paid. That’s why we say, earning money while you sleep.
#3 Better Flexibility/mobilityWhen you rent you are tied down to a certain lease term and have to give 30-90 day notice to leave without penalty. $$
When you house hack, you get to call the shots and are in control of finding a qualified tenant to pay rent that will cover your mortgage and produce profit (cash flow) each month. If you purchase a house the traditional way, you risk being tied down to a certain location since market rents probably won’t cover your mortgage.
#4 Supersized tax benefitsPoint blank renting = 0 tax benefits.
House hacking = traditional tax benefits AND business tax benefits while allowing you to write off more expenses that you think.
#WINWIN - always be sure to consult with your accountant and CPA
#5 Control Control ControlSo when you are a renter, your rent amount most likely increases every time your renew a new lease and either have to accept the new term or move to a different spot. And we all know how fun moving in.
House hacking - if you’re financing or getting a mortgage, you are locking in a fixed rate and mortgage amount which gives you more control over your expenses. Now property taxes and HOAs are the smaller amounts that you don’t have control over, but the great part is that you have control over how much you want to increase your tenants rental income to cover differences.