Hey everyone Hey Eric here and today I want to discuss house hacking. I got a good friend who’s been thinking about buying something, but he wanted to understand how to afford something in this market here in Utah. So the quick of it house hacking is when you buy a property, whether it’s a single family home or a multi-unit, you live in part and you rent out the other part. So the easiest way to think about it is buy a multi-unit, buy a duplex, buy a mother in law apartment. This is how I started with my real estate investing. So you buy a two-unit home, you rent out half of it and then you live in the other half subsidized. Basically, you rent out your basement apartment for 1000 bucks a month, and let’s say your mortgage is 2000 bucks. So now half of your mortgage is paid for by that tenant. Another way to think about it is by a single family home that has four bedrooms. You rent out a few of those bedrooms.

They’re subsidizing your mortgage and you can do this with college students, you can do it with friends, basically roommates are paying your mortgage. Another great way to do it if you want to make more cash flow, would be put one of those rooms or that basement unit onto you short term rental site like Airbnb or VRBO. It’s a great way to increase cash flow. It is a little bit more work, but it’ll help pay more of your mortgage. Just a little history, this is how I bought my first property in Sugarhouse. About ten years ago, my wife and I recently married, not making much money. We bought a property knowing that we would rent out the basement for $800 a month, and at that time our mortgage was about 1250-1300 dollars a month. So after we did, the repairs in the basement, got it rent ready, we put a tenant in there paying over half our mortgage. You know, after all was said and done, we were responsible for about $500 of a mortgage and our basement tenant was paying $800 for that mortgage.

So it’s a great way to get easy equity, build wealth in real estate and starting out you know, if you’re single or if you’re married with no kids, it’s really a great way to start building wealth fast and getting in, especially in this competitive market right now where prices are high. Get into something now. Rent out part of it, whether it’s a one Unit two, Unit three Unit four-plex. Any of those you can use the same type of FHA or conventional financing, where you only put 3% down to take control of this huge asset, which you can then rent out. So if you have questions, go to our website HeyEric.com. You can get my, you know, report on how to do this, but feel free to reach out with any questions. And thanks for joining me.