Is House Hacking Worth Doing?
House hacking is the practice of renting out a portion of one's house to help pay for housing expenses. This can result in the person being able to live for free or at a reduced cost. In the case of the author, they bought a three-unit property and renovated two of the units to increase their value and rent price. They were then able to rent out the other two units and cover their mortgage while living in the third unit for free.
While the process of house hacking can be long and challenging, the author believes it is worth it for the flexibility and freedom it provides. It also allows for a potential increase in net worth and the ability to sell or refinance in the future. However, there will always be issues that arise with owning a property, and it is important to be prepared for these challenges.
One of the biggest challenges of house hacking is the initial cost and effort involved in purchasing and renovating a property. This can be a significant financial investment, and the process of renovating can take several months or even longer. In the case of the author, they spent their entire life savings on the property and over $80,000 on renovations.
Additionally, living through a renovation can be difficult and disruptive, as the author experienced with a lack of a kitchen and functioning bathroom for several months.
Another challenge of house hacking is dealing with tenants and the potential for issues to arise. While renting out units can help cover expenses, it also comes with its own set of challenges. The author had to deal with water leaks, furnace problems, and other unexpected issues. It is important to be prepared for these challenges and have a plan in place to handle them if they occur.
Despite these challenges, the author believes that the benefits of house hacking far outweigh the drawbacks. In addition to the financial benefits of living for free or at a reduced cost, it also provides flexibility and freedom. The author was able to leave their job and take their time finding a new one without worrying about paying for rent. Additionally, the increase in net worth and cash has resulted in house-hacking being one of the best financial decisions ever made.
If you prefer to watch the review in video format, please click the video below!