Income Boost Blueprint
Let Your House Pay for Itself
One of the best strategies to boost your incoming dollars is to creatively think of ways to reduce your home mortgage or monthly rental payment. Your monthly mortgage or rental amount is likely the largest recurring expense you have.
So, utilizing your home to make some extra dollars is a wise thing to do. Consider these suggestions to accumulate money from your home:
- Take in a roommate or renter. If you have a larger house or condo that has at least one extra bedroom, you could rent out one of the bedrooms to a student or single working person.
- Even if you charged them $75-$100 a week for the bedroom, including a shelf in the refrigerator and kitchen privileges, youâd end up with roughly $300-$400 extra a month. You can apply those dollars toward your house payment.
- Youâd shave costs off of your monthly mortgage. Plus, youâd be helping the other person.
- Rent out your home occasionally. Another way to earn with your home is to rent out your house to others for short stints, like vacations, holidays, and special events. Itâs possible for you to get enough cash on a regular basis to pay your mortgage at least some of the time whenever you rent out your home a few times a year.
- If you live in a tourist town, renting your home out during the high tourist season for three or four weeks a year could provide you with a nice tidy bundle to apply toward your home loan.
- Perhaps you live in a community that has a large sporting complex that holds many state or national events or where people come to see the natural landscapes and fall colors.
- You could stay with friends and family for just a few short weeks a year while renting out your home for as much as $1,500-$2,000 a week to those who wish to see the sporting events or enjoy the colorful foliage in the fall.
- If you prefer, when you go on vacation, rent out your home to someone who wants to vacation in your town and then use the cash to cover your vacation costs. Websites like Vacation Rentals by Owners (VRBO) make it easy for you to list your home for the exact period of time you wish to make it available for rental.
- Renovate your home to include a small apartment unit. If you live in a two-story home or a home with a basement, you may have a virtual gold mine. Do some renovations to include a small living area, kitchenette, bathroom, and bedroom.
- If you have a large upstairs area, it may be easier than you think to hook two or three of the rooms together and have a kitchen installed. Voila! You now have a small apartment that you could rent out for several hundred dollars a month.
- The same goes for a finished basement. You could make a studio apartment with open living, dining, and kitchen area with a bedroom area installed behind one wall.
- Even though both of these plans would involve you doing a lot of the work (tearing out walls, painting, and the like) and then paying upfront for the renovations youâre unable to do yourself (wiring, plumbing, and cabinet installation), you stand to make hundreds monthly once you rent out the space.
- Purchase a multi-unit property. Another way to let your home pay for itself is to buy a multi-unit property like a duplex or triplex. You could live in in one unit and rent out the other(s). Then, use the rent from the other unitsâ tenants to pay your entire mortgage payment on the property each month.
- Owning and living in a multi-unit property allows you to live ârent-freeâ while you build up equity in the property.
- Youâll also learn how to become a landlord while banking some extra bucks.
- In fact, you may even have extra money left over from the tenantsâ rent payments after paying your monthly mortgage payments. Then, you can use that income to invest in more real estate, which then pays for itself with its own renters, too.
- Or you might want to use the extra income to get in to âflipping homesââbuying bank-owned or short sale properties to fix up and sell or rent out to keep more extra money coming in.
- However you decide to use it, the multi-unit property purchase plan is great for getting you the cash for investing in your first real estate deal, regardless of what you do with it after you buy it. Plus, youâll have the opportunity to âstick your toeâ into the waters of becoming a landlord and managing a real estate investment.
- Ultimately, your home will be paying for itself when you buy and live in a multi-unit property.
Itâs exciting to think about how your home could be the key to your future financial freedom. Take some time to explore all the ways you might be able to let your home pay for itself. When the money starts coming in, youâll be glad you did.
Special Factors to Consider When You Plan to Boost Your Income with Your Home
As youâre mulling over the above strategies to let your house pay for itself, keep in mind these tidbits of information:
- Extra money each month. With some of the above suggestions, even though you may not make enough to pay every monthly mortgage payment, youâll surely bring in the extra money to pay a portion of your mortgage payments or pay down your principal to pay off the mortgage more quickly.
- Invest in an attorney. Another factor to consider is meeting with a real estate attorney to help you draw up a contractual agreement form to use with renters (even short termers) to ensure you understand one another. Spelling out the specific aspects of your arrangements in advance can help prevent troublesome situations later.
- Keep an open mind. When it comes to earning money from your house, itâs a good idea to ponder doing things that you wouldnât have considered in the past. For example, you may have trouble imagining yourself taking in a stranger to rent one of your bedrooms.
- However, you could use word of mouth with friends and neighbors to find a trusted college student or young professional whoâs just starting out. If you do end up trying it out (renting out a room), you may be pleasantly surprised to see how simple it is to adjust to sharing your home with another person.
- The added income could really take the pressure off paying a high mortgage payment.
- Allow yourself to try some new ways to boost your income. Who knows where you could go financially after you develop an additional stream of steady income?
- A cautionary note. Itâs important to carry the necessary liability insurance and include the extra income in your taxes if you decide to undertake some of these suggestions. Check with your cityâs coding and zoning officials or an attorney with your questions.
It may be hard to imagine that your home could actually be paying for itself. But as you can see, it is possible. With some work on your part, you can make hundreds of extra dollars monthly. Using your home to gain more income can get you out of a financial jam. Join the thousands of people who enjoy extra income from their homes. Your financially abundant future is waiting.
Published at Tue, 01 Sep 2020 00:08:00 +0000