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Triad REIA Welcomes Steve Tyree to Lunch & Learn:
House Hacking as a Passive Income Portfolio-Building Strategy
Steve Tyree is a real estate investor, licensed broker, owner of T’vinci Properties (a property management company), & owner of Real Freedom LLC (a HomeVestors franchise). Steve has served on the boards of the Triad REIA & Greensboro Landlords Association. He's been party to hundreds of real estate deals, & managed thousands of tenancies.
House hacking is one of the most accessible & effective strategies for getting started in real estate investing, especially if you're looking to build wealth while minimizing your own housing expenses. Steve bought his first property as a house hack at age 22 & will expand on this topic as a long-time real estate investor & business owner, but here is the basic premise...
What is House Hacking? House hacking is a real estate investing strategy whereby you live in a property (usually one you own) & rent out part of it to offset your housing costs or even generate cash flow. The idea is to turn your primary residence into an investment.
Common House Hacking Setups:
- Multifamily Property (Duplex/Triplex/Fourplex)
- Live in one unit & rent out the others.
- Up to 4 units still qualifies for residential financing (better loan terms than commercial).
- Single-Family Home with Roommates
- Buy a house & rent out the extra bedrooms.
- ADU or Basement/Attic Apartment
- Convert part of your home into a separate rentable unit (if zoning allows).
- Live-In Flip
- Buy a fixer-upper, live in it while you renovate, then sell after a couple of years for a profit (potentially tax-free).
Why It’s a Powerful Wealth-Building Tool:
- Low Barrier to Entry: You can use low down payment loans like FHA (3.5% down) or VA (0% down, if eligible).
- Live for Cheap or Free: Rental income can cover all or most of your mortgage, taxes, & insurance.
- Build Equity: Over time, you're paying down a mortgage & (hopefully) the property is appreciating.
- Landlording Experience: You get real-world exposure to tenant management, repairs, & income property basics.
- Tax Benefits: You can deduct a portion of your expenses, depreciation, & in some cases, shelter the rental income.
Risks & Considerations:
- Tenant Management: Living next to or with tenants isn't for everyone.
- Zoning & Regulations: Some cities restrict short-term or accessory rentals.
- Privacy: Sharing walls or spaces may reduce your comfort level.
- Financing Limits: You need to qualify for the mortgage & often need a solid credit score & income.
Example Scenario: Let’s say you buy a $400,000 triplex with an FHA loan (3.5% down = $14,000). You live in one unit & rent the other two for $1,200 each. If your monthly mortgage, insurance, & taxes are $2,500, your rental income of $2,400 covers almost the entire monthly cost — you're essentially living for $100/month & building equity at the same time.
Long-Term Vision: Many investors use house hacking as their first step. After a year (FHA requires you to live in the property for at least 12 months), you can move out, keep the property as a rental, & repeat the process.
Arrive as early as noon to network with like-minded real estate investors!
The meeting starts at 12:30.
Register below!
Ready? Set. Lunch & Learn with Triad REIA!
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Triad REIA, Inc does not give legal, tax, economic, or investment advice. Triad REIA disclaims all liability for the action or inaction taken or not taken as a result of communications from or to its members, officers, directors, employees & contractors. Each person should consult their own counsel, accountant & other advisors as to legal, tax, economic, investment, & related matters concerning Real Estate & other investments. |