How to turn your home into an investment

If you do it right, owning a home can be an investment and increase your potential returns. Here’s everything you need to know.

Owning a home is surely a safe bet, but it has some drawbacks. Depending on the price you pay, the appreciation rate and other factors, you could end up with negative returns. To avoid this, take these things into consideration:

House hacking

This term means getting tenants to pay for their own living space… and for yours too. One way of house hacking is by living in a home and renting out rooms. This will allow you to choose how many rooms you rent and how often. Ideally, you will cover more than the cost of the rooms you’re renting out.

Another idea is to purchase a multiunit property, so you live in one unit and rent out the other one(s) at a rate that’s high enough to cover the whole mortgage.


If you’ve got home equity, you might be eligible for a line of credit known as HELOC, which is a Home Equity Loan. Banks will give you an amount that is around 70 to 80 percent of your home’s equity. 

This money can be used for different purposes, but it is mainly used to invest in more real estate.

Buy low, sell high

Finding a good deal in real estate usually takes time and diligence. Properties are usually listed at a higher market value, so you will need to negotiate with the real estate agent to get you a good deal. Sometimes you might find great deals out there, so in that case you need to be fast enough in order to make sure no one gets it first.

Improve your home

Home improvements won’t pay for themselves, that’s true. However, some renovations in some markets will.
To find out which renovations will boost your real estate game, check out Remodeling Magazine Cost vs. Value report.

Typically, bathroom, kitchen and basement remodels are things that can increase the value of your home.

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