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tFI by REI, the online financial advice source, has launched a new guide to maximizing savings opportunities by reducing housing costs. The guide identifies six different ways that housing can be utilized to generate savings in an investment strategy known as house hacking.More information can be found at: https://fibyrei.com/house-hacking-ultimate-guide
House hacking seeks to reduce or eliminate housing costs by generating income from the home. This can be achieved through a number of strategies with the ultimate aim to generate savings through reducing housing costs, which for most people is their greatest monthly outlay.
Renting out a room in the house is a straightforward way to house hack. There are income opportunities provided by renting out the extra rooms in a house to long term tenants or short-term vacationers through Airbnb to reduce housing costs.
If the house does not have any extra rooms, it may well be easily converted to provide rental opportunities. Popular options include creating a mother-in-law suite or finishing a basement to create extra liveable space to rent out.
Many homes have an outside building that can be rented out to cover the cost of the total mortgage. A few options might include converting a pool house or adding an apartment above a garage. An alternative investment strategy for those looking to buy a new home is to buy one with existing rentable outside buildings already in place.
Another strategy is to buy a property that provides multi-unit homes, then live in one unit and rent out the remainder. For example, the investor could buy a duplex and rent out one side. It provides a way to maximize privacy while enjoying the benefits of a house hack.
Those who want to maximize their property income but do not want to have the inconvenience of renters can consider buying a “fixer-upper”. They simply live in the property while it is being converted into a more desirable home before selling for a profit and moving on to the next home.
Finally the easiest way to lower housing costs is to find a way for the employer to pay for housing. Whilst not an option for everybody, many employers offer free or subsidized housing.
Interested parties can find out more at: https://fibyrei.com/brrrr-house-hack-case-study/
Additional details are available at: https://fibyrei.com/house-hacking-case-studies/
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