How would you like to go through the process of buying a home, and it turns out that you don’t even have to pay for the mortgage (the monthly payment)? There is a way, and if you do it, you will want to buy more and more properties because you will see the benefits of owning real estate.
House hacking: Buying a duplex or townhouse to live in, and renting out the other side.
You may be thinking that buying a duplex is going to cost you a lot more money than buying a single family home, but think again! Even if the cost for the property is more than a single family home, if someone else is renting the other side, you can afford for your monthly payment to be higher and you can get approved for a higher home price. Let’s look at some examples:
Single family home: $200,000
Monthly mortgage: $1000/month payment for 30 years
–You are the only one making payments
Duplex or Twin home: $300,000
Monthly mortgage: $1450/month payment for 30 years
–You rent out the other side for $1100/month and you pay $350/month for 30 yrs
What a sweet deal! You pay $350 a month for your own property?! This is also something to consider if/when you decide to help your own kids out with buying their first house, or potentially buying a property where your kids go to college someday.
Do you have a house hacking story you would like to share? Post in the comments below…
Creating opportunities for financial freedom 