“House Hacking” – What Is It and How You Can Do It
If you’re just getting started in real estate investing, “house hacking” is a great strategy. House hacking means you buy a property and live in it with the intention of leaving it as a rental at some point. This is most common with Federal Housing Administration loans as they require the buyer to live in the property for at least a year. At Boise Turnkey, we do a few deals a year with new investors using FHA and VA loans to turn the property into a rental later on. Here’s how you can do it too!
What is House Hacking
House hacking can come in two forms. You are purchasing a single-family home and living in it for a year to meet the FHA loan qualification. Once the year is completed, then you can turn it into a rental property. The second option is to purchase a multi-unit property and have your tenants pay for your housing expenses. Essentially, you get to live there for free! This can look like buying a duplex or triplex. This is an excellent option for investors interested in becoming landlords as you’ll get the hands-on experience it requires.
The Benefits
As an owner-occupant, you’ll get better financing terms like lower interest rates and terms compared to investment financing. And when you live in the property, you better understand the property and the tenants it attracts. This will help make the transition into a rental property smoother.
If you like to learn more about low down payment loan programs and ready to start house hacking, contact us today! We’d be happy to start and guide you through your home buying journey. Contact us by calling (208) 957-0870 or emailing Info@BoiseTurnkey.com
