Want to grow your net worth, collect passive income and begin building a rental real estate portfolio?

try house-hacking

What is house-hacking? The basic concept is to buy something that has space to rent out, which covers the holding costs of the property. Holding costs are things like the mortgage, insurance, taxes, landscaping, water/sewer, garbage.

Getting a loan for a 1-4 unit property is a lot easier than 5+ units. It’s based on your personal credit score and debt-to-income ratio. The loans are lower interest rates (generally) than investment loans and amortize over 30 years (aka lower payments).

What type of properties can you house-hack?

• Single-family- Buy, live in it and rent room(s) to friends, nurses, you name it.

• Duplex, Triplex, FourplexBuy, live in one unit and lease the other 1, 2, or 3 (depending on size of the property).

With a good credit score (680+ probably), good job (aka consistent income that is reportable), low monthly debts – you could qualify for program to buy a 2-4 unit property with a low down payment %, just like the down payment you’d need to buy a single-family home.If you get an offer accepted on a property like the above this week, you could close in 30 days and by the end of March be the proud new owner of your first (or second, third) passive real estate investment. Something that will pay you and grow your net worth AND be useful as collateral (later on) to pursue other, perhaps larger properties.