Buying a Home in Queens? Here’s How House Hacking Could Be Cheaper Than Renting

If you’re a savvy Queens homebuyer tired of paying high rent and ready to build equity in a property, house hacking might be worth considering. Essentially, house hacking involves purchasing a property with multiple units or bedrooms, living in one unit, and renting out the others to offset your mortgage payments.

Here are three reasons why house hacking could be the answer to your home buying dreams:

#1: House Hacking Can Give You More Buying Power

Queens has a high median home price of almost $1 million, which can make it tough to afford a property on your own. However, with house hacking, you can use rental income to offset your mortgage payments, making it easier to qualify for a loan. For example, if you bought a two-unit property for $1 million and rented out one unit for $1,500 a month, you could use that income to qualify for a larger mortgage.

#2: House Hacking Can Help You Build Wealth Faster

When you rent, you’re essentially paying someone else’s mortgage and building their wealth. With house hacking, you’ll be building equity in your own property while generating rental income. Over time, as property values increase and your mortgage balance decreases, your net worth will grow.

#3: House Hacking Gives You More Flexibility

When you own a property, you have the flexibility to make changes and upgrades to suit your lifestyle. With house hacking, you can customize your living space and rental units to fit your needs. For example, you could live in the larger unit and rent out the smaller one, or you could rent out both units and live in a tiny house in the backyard. The possibilities are endless, and you can tailor your house hacking strategy to your lifestyle and financial goals.

The Financial Benefits of House Hacking in Queens: Let’s Do the Math

But how much can you really save with house hacking? Let’s do the math.

According to recent data, the median rent in Queens is $2,801 per month. If you were to rent for five years, you would spend a total of $168,060. In contrast, if you were to buy a two-unit property for $1 million and rent out one unit for $1,500 a month, you could potentially offset your mortgage payments by $90,000 over five years. Plus, you would be building equity in your property, which could appreciate over time.

Building Wealth Through House Hacking: Is House Hacking Worth the Investment?

Of course, house hacking isn’t for everyone. It requires a certain level of commitment and responsibility to manage rental units and tenants. You’ll also need to be comfortable living in close proximity to your tenants and sharing common areas. However, for those who are up for the challenge, house hacking can be a smart way to enter the Queens real estate market and start building wealth.

House hacking is a creative way to buy your first home in Queens and potentially save money on rent. By living in one unit and renting out the others, you can offset your mortgage payments and build equity in your property. Plus, you’ll have the flexibility to customize your living space and rental units to suit your lifestyle. If you’re interested in house hacking, be sure to work with a real estate agent who specializes in multi-unit properties and can help you navigate the process. Good luck, and happy house hacking!

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