What Is House Hacking? (Beginner Real Estate Investing Strategy)

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Many people want to invest in real estate. However, making a twenty percent down payment for a rental property can be an extremely high barrier to entry. In fact, down payments keep a lot of would-be real estate investors on the sidelines as opposed to getting started with their first rental properties.

In this video, tax expert Karlton Dennis explains the concept of house hacking and how it can help new real estate investors get around the 20% down payments required for other methods of real estate investing. Understanding the different strategies available for real estate investing can be beneficial for people who are thinking about getting into the game.

House hacking might be an unconventional form of real estate investing. But, when it is done correctly, it can be extremely beneficial and extremely successful. Some of the most well-known real estate investors out there got their start in the industry by using the house hacking method for their first rental property.

CHATPERS:
0:00 Intro
0:29 What is House Hacking?
0:42 Pros of House Hacking
0:45 Smaller Down Payments
1:47 Reduces Your Housing Costs
2:31 Tax Benefits
3:24 Cons of House Hacking
3:27 Lack of Privacy
3:45 Landlord Responsibilities
4:15 You Must Live in the Property
4:41 How Do You Get Started With House Hacking?
4:49 Step #1: Get Pre-Approved for a Mortgage
5:30 Step #2: Choose the Right Property
6:07 Step #3: Buy the Property
6:43 Step #4: Move In and Rent the Property
7:22 House Hacking Example
8:16 The Bottom Line for House Hacking
8:42 Tax-Free Wealth Challenge - August 2025 Promo
9:10 Outro

*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

#househacking #realestateinvesting #realestatelife