In this episode we discuss the Pros and Cons of House Hacking.

Pros

1-Build equity in your house

2-Live rent free or close to rent free

3-House hacking can also help you qualify for low-down-payment loans reserved for primary residences.

4-You can use the profits to grow your investment portfolio

Cons

1)PMI (Private Mortgage insurance) for those putting down less than 20%.

2)House hacks can sometimes be tricky to get out of. If you wanted to sell the home, for example, you might have to wait until every tenant left — and with leases staggered out, that could mean a few months with very little income coming in.

3)Your home may have more wear and tear.

4)You'll have roommates/housemates and less privacy.

5)You'll have to manage the property and tenants.

6)Owner occupied means you have to live there a year to get a good interest rate and low down payment .

We also discuss Rent Hacking for those unable to get an affordable house and down payment. Enjoy.