House hacking is a real estate investment strategy where an individual or a family purchases a property with the intention of living in one part of it while renting out the other part(s) to generate income. The idea is to offset or completely cover the mortgage and other expenses associated with owning the property by renting out a portion of it.

There are several ways to implement house hacking:

1. Multi-unit property: This involves purchasing a property with multiple units, such as a duplex, triplex, or quadplex. The owner lives in one unit while renting out the others.
2. Single-family home with rental units: In this scenario, the owner of a single-family home might rent out rooms to tenants or convert a portion of the property, such as a basement or garage, into a separate rental unit.
3. Renting out extra space: Homeowners might also rent out extra bedrooms in their home to roommates or use platforms like Airbnb to rent out space on a short-term basis.

House hacking can provide several benefits:

1. Income generation: Renting out a portion of the property helps cover mortgage payments and other expenses, reducing the owner’s housing costs or even turning a profit.
2. Equity building: As the mortgage is paid down, the owner builds equity in the property, potentially leading to long-term wealth accumulation.
3. Tax advantages: Rental income may be partially or fully offset by deductions for expenses such as mortgage interest, property taxes, and maintenance costs.
4. Experience in real estate investing: House hacking can serve as a low-risk entry point into real estate investing, providing valuable experience for future investment endeavors.
5. With proven financials from the rental suite the income can be included in the mortgage application to show a higher income level for qualification.

However, house hacking also comes with challenges, such as the responsibilities of being a landlord, potential vacancies, and the need to manage tenant relationships. Additionally, not all properties or locations are conducive to house hacking, so thorough research and analysis are necessary before pursuing this strategy.

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Check out these property examples below:

https://portal.onehome.com/en-CA/share/1083577K24331