How to get Paid to live in your House

Hey House Hackers! Today, I'd thought it would be nice to show you how to get paid to live in your house instead of shelling out the money for a large monthly mortgage payment. So, I’m an advocate of finding ways to work smarter not harder. And if increasing your financial wealth is one of them, this video is for you.

So house hacking it’s all about the numbers, so let’s jump right its an take a look at a couple of examples:  

Example A: - traditional house purchase
You found the perfect house with modern upgrades, perfect neighbors and purchased it for 250,000 which is 5K above the list price because you had to have it.  You’re a private kind of person and don’t mind having unused space so you have all 5 bedrooms and 3 baths for you and your significant other and your dog.  You’re mortgage comes to 1,500/month and in 6 months your water heater needs to be replaced so you spend 1500.  That comes to $10,500 out of pocket.

Example B:
Same house for 250,000 and this time we pay 5k over its price because it’s an ideal property to house hack. You decided don’t need the 3 bedrooms downstairs and collect $1600/month in rental income.  Your mortgage is still $1,500/month and now you’re getting paid $100 to live in your home.  In 6 months your water heater needs to be replaced so you spend $1500.  Since you’ve profited $600 in rents, you’re out of pocket costs are only $900 as opposed to $1500.  Plus, a portion of the $1500 can be written off as a business expense and lowers your taxable income.  And the icing on the cake is that other people are paying down your mortgage, which increased your equity and you haven’t spent a dime out of your pocket.  

Here they are side by side - which scenario would you choose? (Refer to Video)

Now don’t get me wrong, house hacking isn’t quite that easy.  There are certain properties that are optimal for house hacking and some that you need to avoid.  

Depending on your real estate market, you might not be able to get paid to live in your house, and sometimes you’ll have to settle for reducing your mortgage payment by half. 

That sounds like a good settlement to me!  

I always recommend consulting with a house hacking specialist  ::wink wink:::so they can run the numbers and help you select a property that can give you the best cash flow and income.

That’s it for now, and until the next hump day, happy house hacking!


Be sure to follow our YouTube Page - House Hacking Homegirl and our Facebook and Instagram pages for more awesome stuff!

Comments

Popular posts from this blog

The Truth about House Appreciation Profit

Why your exit strategy is important when House Hacking

5 Reasons to STOP renting and START House Hacking