House hacking is defined (my definition) as: purchasing a Boston real estate with the intent to rent rooms/apartments to tenants in order to cover a portion, or all, of your mortgage payment.
House Hacking Strategies
There are many house hacking strategies out there, and ultimately anyway you can earn money with your residence works!
This is the most common method of Boston house hacking. The reason is that it is simple to do, and an easier transition for most. Some people don’t like the idea of having roommates or other people living in their unit. For that reason, a duplex, triplex, or four-plex (we will use the word “plex” going forward) is much easier to adjust to. This is no different than living in an apartment with neighbors sharing the wall…except you own the asset.
When your house hacks a plex it is fairly easy to self-manage the property if you should choose. The biggest downside is that your neighbors will know you own the building and may try to get away with some things because they know you. This can be a little uncomfortable. I personally prefer to use a property manager and not let the other tenants know I own the building. That way I can still keep an eye on the building, but don’t have to be the “bad guy” haha.
Another great thing about the plex house hack is that it is super easy to rent your unit out if/when you move out of the property. With this additional income, the property will cash flow even more, and you can move on to house hacking another property!
I have friends that hack their Beacon Hill condo with roommates. If you buy a two-bedroom Boston condo for sale. you can live in one room and rent the other out. This is an easy way to minimize (or erase) your mortgage payment;
This is especially common with young professionals moving into downtown Boston Condo or parents of college students who buy a Beacon Hill condo for their Emerson College or Suffolk college child.