What’s that, you say?? If you want to buy a home and you want to have someone else pay all or part of your mortgage, this may be the strategy you’re looking for.
House hacking is when you buy a duplex or multi-family home, live in one of the units and rent the others out.
This is a great idea if you are handy and willing to put some sweat equity into a house as well because you can fix up one side and then the move and do the other. Refinance, or simply live there and if you now have an updated rental, you may be able to raise rent and attract a long term tenant.
I especially like this for people that have low down payments – because you are living in the multi-family (up to 4 units) you can qualify for an FHA 3.5% down loan at a higher rate and the lender will take your rent into account as part of your income.
Loan limits on a single family home are $331,760 in MN, and up to $736,450 for a fourplex.
Check out the Bigger Pockets podcast for more real estate investment info. 🙂
Let me know how I can help you!