Turn Your Home into a Cash Cow: Strategies for Homeowner Side Hustles

Are the increasing costs of nearly everything these days making the prospect of owning your own home seem more distant? According to Bankrate, many people are turning to side hustles to earn extra income, possibly to navigate these rising expenses and save for a home. This trend is particularly popular among younger individuals who may be contending with student loan debt (refer to the graph below).

Invest in your future with these two strategies: enjoy the benefits of affordable homeownership today and build a profitable side hustle for tomorrow.

Turning Fixer-Uppers into Gold: Seizing the Opportunity

An option to facilitate your entry into homeownership is contemplating the acquisition of a fixer-upper – a property that may have less immediate appeal and consequently has remained on the market for an extended period. As highlighted in a recent U.S. News article:

"The current state of the housing market may prompt you to explore additional options in your quest for an affordable home. A fixer-upper, in need of some updates and a bit of TLC, can seem like a welcome alternative to move-in-ready houses that get snapped up before you even get a chance to tour them."

Choosing a home that demands some renovation can yield two significant advantages. Firstly, the search for a home becomes more straightforward as you're not fixated on finding the perfect option. Additionally, it could enable you to enter the housing market at a more budget-friendly price point. This approach presents a more cost-effective path to homeownership, with the added potential for future profits.

The residence might require some effort, but dedicating time and energy to progressively improve your dwelling not only transforms it into a comfortable home but also raises its prospective market value. Consequently, as you relish the fulfillment of converting a house into a home, you're concurrently accumulating equity that can be leveraged when the time comes to sell.

Making Your Home More Affordable by Renting Out a Section

Today's housing market can be challenging, especially for young buyers. But fear not! There's a strategic approach that can unlock the doors to homeownership: purchasing a property with the intention of renting out a portion of it. This "renter-homeowner hybrid" model is a rising trend, and for good reason. According to a recent press release from Zillow, renting out a portion of their home is already very important for most young homebuyers (see graph below). This data highlights the growing appeal of this strategy for those seeking affordable and flexible homeownership.

This method serves a meaningful objective, as expressed by Manny Garcia, Senior Population Scientist at Zillow:

With the rise of the "side hustle" mindset, where traditional jobs may not be enough, rental income emerges as a powerful tool for first-time buyers, paving the way for them to achieve their dream of owning a home.

Open the door to affordability and investment: Embrace the potential of your home by renting out a portion of it. This smart strategy can make homeownership a reality and turn your property into a valuable income source.

Bottom Line

Don't let affordability challenges hold you back! Both of these strategies pave the way to homeownership. To understand how they might work for you, consult a trusted real estate agent.