If you are looking at investing in real estate and you aren’t sure how, house hacking may be for you. Even if you aren’t necessarily looking to build a real estate portfolio, house hacking can be a great way to minimize your personal housing expenses. If you are unfamiliar, house hacking it a way to invest in real estate where you live in one unit and rent out the others. Here are some of the benefits of house hacking.
One of the biggest hurdles to home ownership is securing the funds for a down payment. With a investment home, lenders often require twenty five to thirty percent as a down payment. As the owner occupant though, you can qualify for a wider array of loans. This allows your to make a much smaller down payment, often as low as three percent.
Better Interest Rates
Similar to the down payment, living in a home often affords you a much better interest rate. You can qualify for FHA and VA loans which will ascertain that you are getting the best rate given your credit score and down payment. This not only makes your mortgage payment more manageable, but it instantly adds more equity to your pocket.
Easy Learning Curve
Managing a rental can be very difficult. However, living in a multi-dwelling property can take a lot of the variables and stress out of the equation. For one, you most likely will be covering your own living expenses with the proceeds from the other unit(s). This takes away the financial uncertainly as it puts more cash in your pocket to maintain the home. Additionally, things like corresponding with the tenants and making sure they are good tenants is much easier when you are living next door. All of these things make being a property manager much easier.
If you are interested in buying or selling a property in the Costa Mesa area, Contact Torelli Realty.