If you are looking to invest in a hot market like Los Angeles or you are new to the industry and you want to find ways to ultimately lead you to investment success, then you want to seriously consider house hacking as a way to accomplish your goals.
Advantages of Multifamily Housing
When house hacking, you are on the hunt for a multifamily property that has a unit you can reside in while you rent out the other units. This typically means finding a property that has two to four units at your disposal. So you get to enjoy all the benefits of homeownership while also benefiting as a landlord in the meantime as well.
Choosing a multifamily property can make your monthly payments much lower or even nonexistent in ideal scenarios. The rent money you collect on the properties can also help you pay down your mortgage much faster.
Condo or Single Family Home with a Roommate
If you can’t or don’t want to invest in a multifamily property, you can also purchase a condo and secure a roommate. You can then live rent-free while the tenant pays the mortgage. Having a roommate allows you to collect monthly rent that you can accumulate. Having this extra income also helps free up more money so you can ultimately invest in other properties to rent out for even more cushion.
Simply rent out each room of a large, single-family house. Share some of the common areas including the kitchen, bathrooms, and laundry areas, and then collect the rent along with half the utilities.
DIY House Hacking Options
To create more space, you can also convert a basement and turn it into an additional unit that you can rent out. The extra space may allot you a 2-unit duplex that can generate more income for you each month.
You can also rent out your garage in a single-family home as a storage solution. If you have a detached garage, why not profit from it? This may not provide you with a large chunk of money, but it can still help you offset your other expenses and requires little effort on your part.
If you are looking for good real estate investment strategies to try out as you continue to familiarize yourself with the industry, house hacking is a great one to try. This is especially true if you are looking for properties in a hot market like Los Angeles.
The extra income house hacking generates can put more money in your pocket so you can invest in some of the more desirable properties in the city.