Gordon Avery | Westfield Real Estate, Southwick Real Estate, West Springfield Real Estate


Photo by Free-Photos via Pixabay

For some, house hacking is the key to getting started in real estate; for others, it's just a smart way to build cash flow into an otherwise uncooperative rental market. Wondering how to get your foot in the door? Here's what you need to know. 

What is House Hacking? 

The term "house hacking" was coined by Bigger Pockets, but in general, the practice has been going on for as long as people have been owning and renting properties. House hacking refers to renting out a part of your primary residence. Generally, that means owning a duplex, triplex, or quadruplex, living in one unit, and renting out the rest. For some, it means renting out one or more rooms of a single-family residence. In an ideal scenario, house hackers can essentially live for free--allowing the rental income from the space they rent out to pay for the mortgage and maintenance of the entire property. 

Why is House Hacking a Smart First Investment? 

As with any investment, the viability of house hacking depends on the market in your area. But for many who want to get into real estate investing but haven't yet taken the plunge, it's a smart step. 

  • Owner-occupants enjoy the best financing terms. When you plan to use the property as your principal residence, you'll get lower down payments (as low as 0-5%, in the case of VA and FHA loans) and lower interest rates. 
  • House hacking serves as training for managing more tenants. Because you'll be living in close proximity to your tenants, it will be easier to keep an eye on your property and address repairs and other issues as they arise. It's a great way to earn a few notches in your landlord belt before purchasing more rental properties in the future. 
  • When you decide to move out, you can rent out the final unit (or the primary house) and enjoy the full benefits of positive cash flow thanks to your low-interest-rate home. 

An Accessible Way to Start Small 

Step one: talk to a lender. If you can get pre-approved for a single family residence, you can get pre-approved for a duplex (or larger).

Already own a home? Consider renting out an extra bedroom, or finishing the basement to rent out as an ADU. And even if you don't net massive positive cash flow at first, you'll massively offset your own cost of living, while gaining valuable experience as an investor and property manager. 


This Single-Family in Middlefield, MA recently sold for $230,000. This Colonial style home was sold by Gordon Avery - Park Square Realty.


69 Chipman Rd, Middlefield, MA 01243

Single-Family

$265,900
Price
$230,000
Sale Price

9
Rooms
6
Beds
2
Baths
This Beautiful Antique Colonial is nestled in the foothills of the Berkshires. Large home that has had too much to list done over the last 30 yrs. This 6 bedroom home has both a blend of the old and the new including two baths. The Kitchen is open and rolls into a large dining room. The Living room is also very large and has the original exposed oak ceiling.Plenty of room to farm if so desired w 6+ acres as well as a private pond on the property. The mechanicals in this home are all modern and all ready done. Newer roof, Septic, Plumbing Etc. This could be the home of your dreams.Priced to move before winter. Call for a private showing.

Similar Properties




133 Middlefield Rd, Chester, MA 01011

Commercial

$265,000
Price

7
Buildings
Industrial
Type of Comm.
685,634.00
Lot Size
15+ acre property consists of two large 2 story warehouses. There is also a separate repair/workshop on property. There is a deeded right to the river and a 24 Hr noise variance that comes with the property too. Two offices and 3 bathrooms. This offer also includes 126 Middlefield rd which ia a large drive in warehouse w newer 3 phase and insulation. Much more to this property and easy to show. Call list agent for details.
Open House
No scheduled Open Houses




This Single-Family in Russell, MA recently sold for $183,500. This Colonial style home was sold by Gordon Avery - Park Square Realty.


20 Park St, Russell, MA 01071

Single-Family

$179,900
Price
$183,500
Sale Price

6
Rooms
4
Beds
1/1
Full/Half Baths
Country living that won't break the bank!!! This 4 bedroom home has three bedrooms on the second floor and one full bathroom. The master bedroom with a private 2nd floor balcony over looking the brook. All set for that morning coffee or a relax to the sounds of the brook with a glass of wine after a tough day. The large living room has a semi private entrance with a pellet stove for those cold winter days and plenty of room for those large gatherings too. You move into the eat in kitchen. Plenty of room in here for those who like to cook (and eat too) as there is ample counter space and a dining area in the kitchen. There is also a 4th bedroom or office off the kitchen. The kitchen slider opens into the back yard and to the brook. The yard is almost a half acre and has a couple out buildings too for the needed storage. Much more to see. Stop by or call for details. Open House Saturday September 7th from 12:00 to 1:30 pm

Similar Properties



This Condo in Westfield, MA recently sold for $109,900. This Garden style home was sold by Gordon Avery - Park Square Realty.


324 Russell Rd, Westfield, MA 01085

Condo

$109,900
Price
$109,900
Sale Price

4
Rooms
2
Beds
1
Baths
This Beautiful end unit has much to offer. The Master bedroom has a sink prep area and a large walk in closet. This opens into the bathroom and the bathroom opens into the public bath sink with a washer dryer unit. The second bedroom is a good size with a closet that is the full length of the room. As you enter the Living room / dining room , you will be surprised by all the room as it opens to a private Balcony. Leaving you can go thru the hall or the Kitchen which has plenty of room for your special personal touches to make it your own. The Complex also has storage in the basement and a large common room for events that may require a little more room. Call for a private scheduled showing.






Loading