#RealEstateInvestingForBeginners #HouseHacking

House hacking is how many people got into real estate investing.

Are you familiar with this concept? Do you want to learn more about house hacking to decide if that's the right way for you to make money from real estate?

In this video we address all the most important questions about this real estate investment strategy.

First things first...

What is house hacking?

House hacking means to buy a small multi family property - usually a duplex or a triples - in order to live in one of the housing units yourself and to rent out the rest to tenants. So, housing hacking means that you simultaneously buy a home and start a rental property investing business.

This comes with many important benefits. Most importantly, you live in your own home for free. When hacking a house, you should conduct careful investment property analysis to make sure that the rental income you will receive for the excess housing units exceeds the total mortgage monthly payment. In this way, your tenants will pay both for your home and for your rental property.

To learn how to perform investment property analysis, read https://bit.ly/36V9NPZ.

It is even possible to buy such a property that you are left with extra cash after covering all recurring monthly expenses. In this way, you get to also make money from real estate, not only live for free and build equity over time.

Another major benefit of house hacking is that financing is much easier and cheaper than the financing required for buying a home and buying an investment property separately.

First of all, you have to apply for only one mortgage loan which means preparing all necessary documents just once and pay single closing fees. You also get to pay only one monthly mortgage payment, which is covered by your tenants.

Furthermore, in some cases of house hacking, you might qualify for an FHA loan. If that's the case, you will need to pay a down payment of as little as 3.5% instead of the conventional mortgage down payment of 20%. The lower rate will also be lower.

This financing option makes hacking a house one of the most affordable ways of getting into real estate investing. Even beginner real estate investors can save up 3.5% of a property price.

One thing to keep in mind when going for house hacking is that you will need to share a home with people you don't know. To make this as unproblematic as possible, look for a property which allows two or three families to live there without getting into other's way. For example, look for a house with separate entrances, individual garages, etc.

If you are wondering how to hack a house, one of the first steps to take is to check out Mashvisor. With our real estate investment tools, you will be able to search through thousands of duplexes and triplexes as well as other multi family homes across the US real estate market.

To learn more about the real estate investment tools you need in 2020 to make profitable rental property investing decision, read https://bit.ly/301Z7hf.

Our investment property calculator will provide you with readily available rental property analysis on all these houses to help you evaluate which one is ideal for your budget and other preferences.

To learn more about Mashvisor's rental property calculator, read https://bit.ly/3eBWExR.

To check out Mashvisor, click https://bit.ly/2TXnTeq.