Many people want to begin investing in real estate. They just don’t know how to get started.
Some experts would tell these folks to simply go out and buy a property. Nothing helps us learn quite like doing. That’s true, but that method also means shelling out hundreds of thousands of dollars. An investor could lose a lot of money doing it that way.
One interesting way to get your feet wet in real estate is to do something called house hacking. You don’t even have to own the house to start.
Here’s how it works. You either buy or rent a three or four-bedroom house with the intention of renting out the other rooms. Fill up the other rooms with people looking for cheap accommodations and you’re in business. If you do it right, you’ll pay next to nothing for rent yourself. You might even live for free.
Getting roommates is a breeze, especially in a big city. A simple ad on Kijiji or Craigslist is usually all it takes. Some people would prefer not to live with strangers, so they put the word out with co-workers and friends. Having a trusted friend vouch for someone is usually enough to put someone at ease.
The return potential is outstanding. I know somebody who paid off a house in just 10 years by throwing his roommates’ rent onto his mortgage each month (after making his required payments). Sure, he had a few problems, but those were usually handled easily. Most roommates are respectful folks who wouldn’t be sharing if they had a big problem with it.
