You know the old saying, “don’t put all your eggs in one basket?” Well what if you had a dozen baskets? In today’s fast-paced world of real estate investing, it’s important to be diversified and invest everywhere from sector to market. And house hacking in Florida is an excellent way for even beginners to get started making money with property investments!
House hacking is a great way to save money and even make some. A typical American spends about 20% or more of their income on rent or mortgage payments, but house hacking can dramatically lower that expense – in some cases you may live rent free!
House hacking in Florida offers tax savings and the opportunity to pay down your mortgage with payments from tenants. House hackers can often deduct a portion of home expenses, which saves them money when they file their taxes!
The Landlord Method
You could be the next landlord in town! Some people opt into purchasing a multi-family unit home and renting out the space within. Just keep an eye out for that sweet spot of affordability while you’re deciding what type of multi-family property to purchase. Multi family homes are often very expensive and may not be the best choice for your first investment opportunity.
The…”Room-lord” Method
Well, that isn’t a word, but you know what I mean. If you aren’t able to secure a multi-family unit, all is not lost! Purchasing a single family unit is often much less expensive and appreciate in value much faster than multi family. With a single family home, you would have the option of renting out the multiple bedrooms to different people all sharing the same living room and kitchen areas. It can be a bit more cramped this way, but a common practice nonetheless.
Permitted Expansions
If you have the land and finances, consider permitting an addition to your home that would be able to house a small family. This allows for a lot more privacy, but can be expensive. I specifically said permit the addition, and that’s because making unpermitted changes can have negative effects on your home value. Units separate from your home have specific requirements that professionals will be able to handle better than most “handymen.”
Things to Keep in Mind
Never underestimate cost. While house hacking in Florida might come at a lower cost than other real estate investment strategies, it will still cost money out of your pocket. Factor upgrades, repairs, permits, vacancies, and more into your budget. Do not allow tenants to live in a home that isn’t up to code or rent ready. And finally, always research local laws to ensure you’re in accordance with how you’re handling your investment.
Florida Property Warehouse Can Help
The flexibility of house hacking in Florida can offer a practical solution for many different lifestyles. It is important to take into account the lifestyle you are looking for when choosing your next property with us at Florida Property Warehouse. We specialize in various areas and can assist you through every step of this process from finding your first home, to learning about mortgages or even other exit strategies!