The following article is great. Buying a fixer upper or renting out a portion of your home are certainly good ways of making some extra income. But, you still have to be able to purchase the home, first. What about all of the potential homebuyers that cannot qualify to buy a home.
Why not go together with a trusted friend that has similar needs when it comes to buying a home. There are a lot of individuals out there who have very good income, down payment money and excellent credit, who still can't afford a home. Or, the home they would like. I've done the math. Let's say one can afford a $500,000 home. As crazy as it seems, $500,000 will nt buy much of a home. But, $700,000 will. A really nice home. By simply adding another equal income, the two individuals will be a able to purchase a very nice home. And, in some cases, they might find a home with two actual living areas (i.e. finished basement with living room, bedroom, bathroom and kitchen). Some issues need to be considered. First of all, can we get along with each other, living in the same home? Do we trust each other to meet our obligations regarding the home (i.e. mortgage payment, maintenance, etc.)? Do we have a good exit plan when one of us decides to get married, has a job transfer, is tired of the situation, etc.)? This concept is not for every one. It's not for most. But, when it works, it's a great way to buy a home far nicer than you could otherwise afford. We see these kinds of properties all the time. If this sounds intriguing to you, give us a call. Call me (Bob) at 720.220.5058 or Cheryl at 303.981.7339.

How To Turn Homeownership into a Side Hustle

Does the rising cost of just about everything these days make your dream of owning your own home feel less within reach? According to Bankrate, many people are seeking additional income through side hustles, possibly to cope with those increasing expenses and save for a home. This trend is particularly popular with younger individuals who may be dealing with student loan debt (see graph below):



Here are two strategies that can not only make homeownership more affordable in the short term, but turn it into a lucrative side hustle that can pay off down the road.

Transforming the Challenge of a Fixer-Upper into an Opportunity

One thing you could do to help you break into homeownership is consider purchasing a fixer-upper. That’s a home that may be a bit less appealing and as a result has lingered on the market longer than normal. According to a recent article from U.S. News:

“The current state of the housing market may have you expanding your options to try to find a home that you can afford. A fixer-upper that needs some updating and a little love can feel like a welcome alternative to move-in ready houses that go off the market before you can even take a tour.

By opting for a home that requires some work, you may see two big benefits. For starters, you may find it’s easier to find a home because you’re not looking for that perfect option. Plus, it may also help you enter the housing market at a lower price point. This strategy provides a more affordable way to become a homeowner while also offering the potential for future profits.

Yes, the home may need a little elbow grease, but investing time and effort into gradually enhancing your house not only makes it a home but also increases its future market value. So, while you enjoy the satisfaction of turning a house into a home, you're also building equity that can be unlocked when it's time to sell.

Renting Out a Portion of Your Home To Make It More Affordable

Another savvy strategy is to purchase a home with the upfront intention of renting out a portion of it. According to a recent press release from Zillow, renting out a part of their home is already very important for most young homebuyers (see graph below):



This approach serves a strong purpose. As Manny Garcia, Senior Population Scientist at Zillow, says:

“For those first-time buyers navigating the ‘side hustle culture,’ where a regular 9-to-5 might not quite cut it for homeownership dreams, rental income can step in to help . . .”

Basically, it can help you afford your monthly mortgage payments. So if you’re open to it, renting out a portion of your home not only helps with affordability, but it also positions you as an investor and turns your home into a source of income.

Bottom Line

In the face of today’s affordability challenges, both of these strategies offer more attainable paths to homeownership, especially for younger buyers. If you want to discuss these options and see how they might play out for you in our local market, let’s connect.