House hacking is one of the promising investing strategies in real estate business. This is especially suitable for new investors who want to start investing but still don’t know what to do. This is a good start in property investing because then you don’t have to jump directly in property investing world. You will learn everything steps by step by being a good landlord first. However, you will still earn your passive income each month while slowly learning more about property business. Thus, you also have more chance t save up for next investment when you are more ready to start investing in higher scale than house hacking.
Challenges in-house hacking
Every business has its challenges and problems. This investing is a great strategy especially for new investors who haven’t purchased their own home yet. House hacking is also not only for those who live in the multifamily property but also those who live in the single-family home. However, house hacking also has some challenges you possibly have to face once you decided to start this strategy. Here are some of them:
- House hacking will be much more challenging if you are the type of person who cares so much about personal space. Having tenants living your next door doesn’t mean your personal space will be constantly invaded. However, it may reduce the sense of personal space and it may make you uncomfortable. However, this shouldn’t be a problem if you make clear lines about how you as a landlord and your tenants live peacefully side by side (in the same home or same building but different unit).
- You haven’t had the experience to be a landlord so you don’t exactly know what to do when there is tenant live next to you. This issue can be solved if you are willing to learn how to be a good landlord. You can read articles or book about property business so you will know what to do. You can also ask your friends or families who are landlords.
- Finding a good deal can be a challenge especially in the beginning when you still figure everything out. However, this is actually not a challenge for house hacker only but also for many investors. It is important for you not to go in a rush. You can do some research first about how the property market around you first before everything. Thus, you will have something to help you figure out how to find the best deals. It is also important to calculate your numbers so that you won’t make the wrong step.
- You have trust issue so it is harder for you to find ‘good’ tenants. It is indeed important to find good tenants. Because you just can’t rent out your house to tenants in a bad manner. You may need to learn more about tenant screening process to find the best tenants. Thus, you will be happily and peacefully live side by side. Make sure you try to get to know more about your potential partners before making any deal.