More millennials are “house hacking” in order to pay for their first home

Older millennials in the Houston area are not living in their first home. Instead, they rent out their property, while crashing on friends’ couches or living with family. It's a trend called "house hacking".

True Houston Real Estate founder Nicole Lopez said millennials can build equity in a property and make their investment money back, plus some, then can build wealth in various ways. Millennials are using rental properties to build wealth off other people's rents to offset or even benefit from their own housing costs all while beginning to build wealth through real estate and earn tax benefits.

"You do have a lot of those millennials that are living, perhaps or renting inside the loop, inside 610. But, they may be purchasing condo units inside the loop, or they may even be looking out towards the suburban areas like Cypress and Tomball and New Caney," said Lopez.

She said they can buy new homes for $160,000 in those areas and someone else can pay off the mortgage, while they pay their own rent.

Lopez added it's not just for Millennials. It can be a great tool for Baby Boomers, like her own family.

"They have a portfolio of rental properties, and eventually this is going to be their retirement plan, having a collection of properties that pay for themselves and they're able to make a monthly profit off of," said Lopez.

She said down payments are ranging anywhere from 20 to 35 percent to get an investment property.

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