House Hacking

What is house hacking, and is it a good way to make passive income? Read our story for more information on this form of real estate investment and whether or not it is right for you.

Different Types of House Hacking

The original term “house hacking” described the practice of buying a multi-family property and living in one unit while renting out the other units. 

Different Types of House Hacking

These days, any situation that involves the investor living on the property with tenants may be considered house hacking.

Multi-Unit Property House Hacking

Is popular, especially for investors that live in cities with a higher cost of living. 

Multi-Unit Property House Hacking

You have the ability to live in a more desirable area and, thus, charge higher rent to tenants to offset your up front costs. 

Rent Out Spare Rooms

Another way to house hack is to purchase a larger property and rent out spare rooms to short-term guests on platforms such as Airbnb or Vrbo.

Fixer Upper House Hacking

And our final way to house hack, is to live in a fixer-upper and rent out part of the property while working to improve it.

Fixer Upper House Hacking

The rent from tenants can go toward paying both the mortgage and upgrades. This can be an excellent way to generate income and increase its resale value.

Fixer Upper House Hacking

You will likely need to charge a lower rent than comparable rentals in the area, however, since a fixer upper entails certain issues.

House Hacking As A Source Of Passive Income

While there are no guarantees in real estate, house hacking can be a smart way to build wealth over time.

House Hacking As A Source Of Passive Income

Like all real estate investment strategies, house hacking may not be a viable option for everyone.

House Hacking As A Source Of Passive Income

It requires a lot of work, from finding the right property to managing tenants to dealing with maintenance and repairs.

House Hacking As A Source Of Passive Income

You will also need a good down-payment in order to make the mortgage manageable and rent affordable for tenants.

House Hacking As A Source Of Passive Income

The down-payment needed for a large property or multifamily property, for example, may be cost prohibitive for many investors.

House Hacking Loans In Colorado

If you are interested in house hacking or any other form of real estate investment in the state of Colorado, contact the professionals at Pine Tree Financial.

House Hacking Loans In Colorado

We loan on all sorts of projects and work with all clients on a case-by-case basis. Click "Learn more" today to get started.