House hacking is my favorite real estate strategy. However, in most markets you will likely need to pay a portion of your expenses to make the deal work. This is not a bad thing as the whole idea of house hacking is to have lower rent, gain equity, and end up with a cash flowing rental property.
If you do want to pursue the best route to having the lowest rent for you possible or even cash flow on the deal, short term renting (STR) out the other unit or rooms is the best way to do so. It is no secret STRs net a higher revenue compared to long term rentals. They do require more work to run them successfully which must not be over looked while you set this up.
This can easily be done in a house and cottage or duplex. In Colorado Springs a one bedroom one bath near downtown will rent long term for $1,300. This same property will rent for $2,500 on avg monthly as an STR. This number will fluctuate based on how you organize your cleaners or if you decide to do the cleans yourself. Doing all the work yourself will have a better chance of living rent free in your house hack.
Another reason I like this strategy is, if there is a massive slow down in STRs you can change your strategy to being either a furnished mid-term (1-3 Months) or a long term rental.
Let me know how your house hacking journey is going in the comments!
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