House hacking has become a popular choice for those looking to invest in their own home while creating a stream of passive income. Panama City Beach can be an ideal location for this, as it a great market for both short-term vacation rentals and long-term leases. If you are interested in learning more about duplexes for sale in Panama City Beach, contact us any time.
To learn more about house hacking in Panama City Beach in 2023, keep reading below.
What is house hacking?
House hacking can take on many forms, but simply put it is a strategy to offset the cost of owning real estate. The homeowner will live in part of the property while renting out another part, covering some or all of the housing expenses from the rental income. One of the most popular and affordable ways to get into house hacking is buying a duplex, living in one unit and renting out the other. This can be an ideal way to get into real estate investing while purchasing a home for yourself.
Benefits of House Hacking with a Duplex
There are many reasons to consider house hacking with a duplex, including:
- When you live in one unit while renting out the other, you will greatly minimize the potential downsides of renting out a property. When your tenants know the owner is next door, they are much more likely to pay on time, follow lease guidelines, and take good care of the property.
- House hacking may provide you with additional financing options. Your mortgage lender may be more likely to approve you to borrow a higher amount when they know you plan to rent out part of the property, which will be considered an additional stream of income.
- Many people find that house hacking allows them to cover most or even all of the mortgage with the revenue from the other unit, freeing up more of their income to work toward other financial goals.
- Investing in a duplex rather than a standalone investment property will likely mean you can still take advantage of FHA benefits, like putting 5% down.
- House hacking can be a stepping stone into building your real estate portfolio. You don’t have to live in one unit of the duplex forever, but can make homeownership a reality more quickly and then move on to renting out both units and living in a separate property in the future.
Is Panama City Beach a good market for house hacking?
Finding the right real estate market for house hacking is essential. Panama City Beach is a great place to invest in an income property of any kind, with a steady demand for vacation rentals that remains strong in a variety of economies. Panama City Beach is one of the top places to vacation in Florida, with a strong tourism economy even in the less busy seasons.
Many people prefer to have a long term tenant for their house hacking plan, and Panama City Beach has a great rental market for this, as well. However, if you are interested in increasing your revenue potential and are not afraid of a bit more property management work, a short term vacation rental model can be an ideal way to leverage your duplex.
Ready to get started on the search for duplexes for sale in Panama City Beach? Contact us any time.