(CNN) — The author of “Long-Distance Real Estate Investing”, David Greene, says there is money-making possibilities right under your roof. “I’ve seen people who are making between 500 to one thousand dollars a month out of a property that they own.”
It sounds too good to be true, but it’s a tried and proved concept. It’s called “house hacking”. The term is used to describe buying a multi-unit property, living in one of the units and renting out the rest.
Says Greene, “And they can actually get their mortgage paid for by other people so that they can rent there for free save money and buy another house.”
Another strategy is to rent out extra bedrooms or listing them on Airbnb. It’s the same idea if you already own a home or you’re renting an apartment.
Greene adds, “Some people actually make more than you’re actually spending every month just by following this strategy.”
First, make sure there’s a demand where you live. Second, find the average rent you can expect by checking websites like Craigslist or Rent-o-Meter.com. Third, make sure it’s legal.
Greene cautions, “You really want to make sure the area that you’re in allows this type of thing. Or if you’re renting the unit yourself, you have to make sure your landlord knows because he owns the property.”
Of course, sharing your home can have privacy and security issues, but the savings perks are there if you’re willing to make some sacrifices.
Greene says the money-making possibilities are real. “House hacking is a financial tool. It’s important to understand that. This is something you’re doing to benefit your finances and give yourself a long-term plan to be able to build wealth in real estate or any other means.”