In this instructional video, real‑estate veteran Joe Homs explains the house‑hacking strategy as a way to eliminate personal housing costs. He defines house hacking as buying a multi‑bedroom property, living in one unit and renting the remaining rooms to generate enough rental income to cover—or even exceed—the mortgage payment. Using a 4‑bedroom example, he shows how $1,000‑$1,500 per room can reduce a $5,000 mortgage to a few hundred dollars out‑of‑pocket, potentially achieving rent‑free living. He outlines the primary advantage (mortgage‑free living) and the main drawback (sharing the home with multiple tenants), likening it to a college dorm experience. Homs then warns about common pitfalls, emphasizing rigorous tenant screening: credit checks, eviction history, compatibility, and practical concerns such as parking. He stresses that the investor becomes a landlord and must manage roommate dynamics. The video concludes with a call to action—encouraging viewers to research suitable properties, ask questions in the comments, and subscribe for more guidance—while reiterating that house hacking, though requiring effort, can accelerate real‑estate portfolio growth.
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Are you tired of paying rent or a mortgage every month and wish there was a way to live free? What if I told you there's a way to do just that through real estate investing? It's called house hacking, and it's a strategy that allows you to live in a property for free while generating rental income from the same property. Hi, I'm Joe Homs, and I have over 40 years of experience as a broker, mentor, and investor, and I want you to subscribe so that you never miss a video. What is house hacking? House hacking is purchasing a home. Hopefully you want to purchase as many bedrooms as possible because that is the definition of house hacking. You're going to rent out these bedrooms. So let's say you're in a 4-bedroom home that you just purchased. Your mortgage is, let's call it, $5,000. Okay, now you're going to have the ability to hopefully rent out each one of those bedrooms For at least $1,000 or $1,500 a month. So if you're living in one and you're renting out the 3 bedrooms, then you're looking at getting anywhere between $3,000 and $4,500. If your mortgage payment is $5,000, then you're only having to pay $500 to own that house. If you can get your rents up a little bit higher, you could really be living rent-free. Hope you're getting value out of these videos. All I ask in return is that you hit that like button. So let's talk about the pros and cons of house hacking. Obviously, I just talked about a pro. You can live rent-free, basically mortgage-free, in a home. The cons, you're living with 3 other people, okay? So you have to put up with that. It's almost like if you're in college and you're in a dorm room, it's pretty much the same thing. Okay, so there is pros and cons to both sides. It just depends how much of a con you're willing to live with so that you have the pro of maybe not even having a mortgage on that house. So you're letting the 3 roommates, tenants, pay your mortgage off for you, and you're living in there rent-free. So pros and cons. Let's talk about some mistakes to avoid with house hacking. The biggest mistake is who's going to rent those places, and what kind of due diligence are you going to do for these people that are moving in? Remember, you're, you're basically the landlord, and so now you have to decide that this person is a good enough person to not only live with you, but they're going to live with 2 other people. Okay, so just, you have to be aware of that, and I think that's probably the biggest downfall. Make sure you do a credit check on people, make sure you do an eviction check on people, make sure that they're compatible with you. If somebody moves in and they have 5 cars, I don't know why they would, but let's just say they do, that might not be compatible with where you're living. And then the other 2 people, it's like your neighbors will probably start to complain that they see so many cars out front. So make sure that everything is compatible not only with you to begin with, but then your 2 other tenants in place. House hacking is a fantastic way to live for free. While building your real estate portfolio. Of course, like any investment, it requires some work, but the payoff is well worth it. So if you're ready to take the plunge, start researching and finding the right property for you. As always, if you have any questions, leave them in the comments below. Don't forget to like, share, and subscribe, and click on this video right here. I'm always here to help.
