House Hacking is where you live in a property while generating income using the additional square footage of the home. For example, if you own a 4-bedroom single-family home, you can rent 3 of the 4 rooms to pay for the mortgage and expenses. If you own a duplex, you can live in one of the units and rent the other unit to either fully pay for you mortgage and expenses or majorly reduce those expenses. Although, our first home increased in value and our equity grew, I learned how our first home was a liability because we worked every month to pay down the mortgage (Money coming out of our pockets). When we purchased our triplex and rented out 2 of the 3 units and rented our first home in Philadelphia, our DREAMS of owning assets (Money going into our pockets) became a reality. There is sacrifice that comes with house hacking because you are giving up space and privacy depending on which property you purchase, but I believe the future rewards are worth the short-term discomfort.
Steps to Get Started:
- Purchase Rich Dad Poor Dad to learn about asset creation
- Pick a great podcast to feed your mind daily (Check out my current rotation)
- B.R.E.D – Black Real Estate Dialogue
- What I’ve Learned with Arianna Huffington
- Choose FI | Financial Independence
- Execute. Learn. Pivot. Execute. Succeed.