House Hacking Case Studies
The path to financial independence can be greatly accelerated if you choose to house hack. By completely eliminating your housing expenses, you can super your savings rate and propel you to your FI number quickly.
Although the idea of house hacking sounds enticing, it might seem like a challenge to execute. After all, there are so many variables when it comes to house hacking. You need to find a space that suits your needs, lifestyle, budget, and FI goals.
If your mind is dreaming up the possibilities, that is a good place to start.
At some point, you’ll want to take the next step and make your house hacking dreams a reality. That’s where our house hacking case studies come in. Each week we take a closer look at the nitty-gritty details behind successful house hackers. Below are some of our favorite case studies.
House Hacking Styles
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Room Rental House Hacking
Renting out a room in your house is a straightforward way to house hack. You can rent out the extra rooms in your house to long term tenants or short-term vacationers through Airbnb to cover your housing costs. In this situation, you would likely share common areas with your renters.
Income Suite House Hacking
If your current housing situation doesn’t have any extra rooms, then you could convert or modify the space you have. Consider adding a mother-in-law suite or finishing a basement to create extra livable space to rent out. Modifying existing space gives you more control over your house hack. You could create a space to maximize privacy for yourself and your renters or leave it more open.
Accessory Dwelling Unit (ADU) House Hacking
An accessory dwelling unit, or ADU, refers to another building on your property. You can rent out this separate building to cover the cost of your total mortgage. A few options might include converting a pool house or adding an apartment above your garage.
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Small Multi-Family House Hacking
In this scenario, you would buy a small multi-unit home and rent out the extra units. For this type of house hack, you can only buy a building with up to 4 units to ensure owner-occupancy financing benefits. For example, you could buy a duplex and rent out one side. It is a great way to maximize privacy while enjoying the benefits of a house hack.
Work Provided Housing House Hacking
Work provided housing is the lowest maintenance house hack option. Essentially, you find a way for your employer to pay for your housing. You might be surprised to learn that many employers offer free or subsidized housing to their employees.
Live In Flip House Hacking
If you don’t want to be a landlord but still want to house hack, you have options. The slow flip option means that you will buy a fixer-upper and live in it while you flip it. Typically, you’ll live in the house for at least 1 year while you fix it up. After you’ve made the house an inviting home, you can sell it for a profit and move on to your next house.