If you have the itch to convert from a renter to a homeowner, but you’re afraid that you can’t afford the monthly costs, you could resort to “house hacking” in order to move yourself closer to your ultimate goal.
There are a number of creative strategies that you may be able to use that could help you to afford a home that you love, without having to stretch – or stress – yourself financially. These can include:
- Renting out a room or other living space on the property. Depending on the size and style of the home, you could consider renting out a room or other space (such as a finished basement, an attic, or a garage that has been converted into living quarters) and receive additional income from tenants. Going this route, you could use a short-term strategy, such as advertising the space on Airbnb, or a longer-term arrangement such as taking on a tenant who rents on a monthly or yearly basis.
- Purchasing a duplex or 4-plex, and living in one of the units. Another viable strategy that can allow you to become a homeowner, while at the same time giving yourself a better financial footing, is to purchase a 2- or 4-family residence, and live in one unit, while renting out the other(s) to tenants.
You don’t have to be an experienced real estate investor to lease out space that you own. And, by letting your lender know ahead of time that you plan to reside in the property, as well as rent out space, it could help you to qualify for the loan.
If you’re in the process of searching for your next home, give us a call. We’ll work with you on locating the perfect place to fit all of your location, living space, and budget-related needs.