Walking away from homeownership and surrendering your house to the bank to avoid foreclosure is a heart-wrenching decision because there is no telling whether the financial stability you once enjoyed in your house will ever return. If at all possible, the best long-term solution is to buy time with your mortgage lender, hold onto your house, and then pay up in better days. These days, everyone is talking about house hacking as the most attainable homeownership-based income stream. Unlike house flipping or buying investment properties and using the rent payments from your first one toward a down payment on a second one, house hacking only requires you to own one property.
Sure, you can make more money by house hacking the more resources you have, but it is still possible to do it if you are barely making ends meet with the home you currently own. If you are falling behind on your other bills just to avoid falling behind on the mortgage, then a house hack could bring you the relief you need. For help being resourceful so you can stop your debt problems from getting worse, contact an Oakland lawsuits, collections, and creditor harassment lawyer.
The Benefits of Two Real Estate Properties for the Price of One
House hacking is a new term for an old phenomenon. It is when you rent out your house while you still live in it. The old generations used to call it taking in boarders. Here are some of the ways that house hacking can work:
The Real Savings From House Hacking Come at Tax Time
The most immediate benefit you get from house hacking is that the tenant’s rent money helps with your mortgage, and you still come out in the black if you charge less than the tenant would pay for a comparably sized apartment. The tax breaks are the best part. As a homeowner, your mortgage interest is tax deductible. Meanwhile, anything you spend on the tenant’s part of the house is a business expense. That includes any repairs and maintenance on the tenant’s side of the house, as well as the tenant’s portion of the utilities and Internet bills. House hacking in your modest home will not make you rich, but it will relieve some of your financial stress.
Contact the Law Office of Melanie Tavare About Creative Solutions to Avoid Mortgage Foreclosure
A debt relief lawyer can help you if you own a home and have fallen behind on so many bills that you worry that your mortgage will be next. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.
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