House Hacking: Exploring Real Estate Investment Strategies
House Hacking is literally one of the best financial decisions you could possibly make. Period. Allow me to explain.
House Hacking is available only to those who do not yet own their first property. And it can set your financial life on a track towards security and profit.
In the United States, CMHC loan options allow you to invest in your first property with only a 3.5% down payment.
In Canada, we have similar options available, where first-time homebuyers only require a 5% down payment for their first property.
Well, we all know that Adam, but how does that help us with our money and our finances?
Here’s how. House hacking can take place in 2 ways.
The first way is to buy a specific type of house through leveraging the banks and putting a small percentage down payment. You then want to live in one room of that house and rent out the other rooms. You want to buy a small multi-family property that has at least 3–4 rooms, and that is cash-flow positive (a little bit less than cash flow positive is also okay in this case — because you are not making a profit on one of the rooms). As long as the area you are investing in is a growing market, you will make money on appreciation in the long run. And you are now paying for…
