What Is House Hacking?

Tammy Emineth

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Are you considering getting into real estate investing? It can be a great way to earn passive income. If you are thinking about getting started but you don't even win a primary residence yet, house hacking might be the best way for you to get started. Let's take a look at what house hacking is and what the benefits of using house hacking as an investment strategy are.

What Is House Hacking?

House hacking is a real estate investment strategy that investors use to generate income by renting out their primary residence. This is something commonly used in areas where it is expensive to own a home and live comfortably. Homeowners rent out space in their multiunit building or primary residence to help offset their costs. Renting out one or more bedrooms or another living space is called "hacking". This means you are using the rental income towards the mortgage payment you own.

Benefits Of House Hacking

Most Americans spend close to 40% of their income on housing. If there was a way to reduce these costs and increase your income, you might consider its benefits, and that's why we are looking into house hacking.

Housing Cost

When you use this investment strategy correctly you can reduce or even eliminate your housing costs. Purchasing a multi-unit property will be more expensive upfront but the rent you get from the other units will pay for your mortgage for you. In some cases, it may even cover repairs or ongoing maintenance costs. This can greatly help homeowners because homeownership comes with a lot of maintenance costs as well as unforeseen repairs.


House hacking can provide you with flexibility in your lifestyle. You can move around as you please and rent out the entire property and retain that rental income. You could later on turn that property into a single-family home as your family grows. With the additional income covering your mortgage, you have a lot more financial freedom and flexibility.

Rental Property

If you go about this by owning a multi-family property then you can learn the ropes of being a landlord while living on site. You will be able to learn valuable skills necessary to manage properties and perform regular maintenance. This is extremely important if you are hoping to continue investing in the future.

Passive Income

When you have an investment property then you have the potential to earn passive income. This can help you pay down your mortgage quickly and move toward another investment property. House hacking can truly give you a jump start into owning multiple investment properties and setting up a great investment and financial portfolio. Passive income is the main reason why people use house hacking to get started investing.

In Conclusion

Investing in real estate can be extremely rewarding. If you are looking into getting started, house hacking is just one of the many ways. Getting in touch with a local Realtor can be a great place to get started. Consider all of your options so you can decide what is best for you and your investment journey.

This is not promotional or commercial and author was not paid for this content.

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I am a former real estate agent turned content marketer. I love to write about real estate, blog about home improvement and optimize real estate and other business websites for our customers. SEO Tips, real estate advice and more.

Frenchtown, MT

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