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Let’s face it, for most of us, our mortgage (or rent) is likely the most expensive thing that we pay for every month. To live mortgage free is the dream for many of us slowly chipping away at our home loans.
It is possible, and many people are doing it. I decided to research some of the best ways to live mortgage (or rent)-free or at a reduced cost, and compile my findings into one great resource. Some of these suggestions are for places you could live while you rent out your home to cover the mortgage.
6 Ways To Live Mortgage-Free
1. Rent Out A Room On Airbnb
If you live in a home with extra rooms, you can rent them out on Airbnb to make some extra money to cover your expenses. We have friends who built a suite in their basement just for this purpose, and it has been very lucrative. They earn more with AirBNB than they ever did with a regular monthly rental. And if your tenant sucks, they’ll be gone in a couple of days!
A few things to be aware of before using Airbnb:
- Make sure that renting your home via Airbnb is legal in your area
- If you’re renting a condo or townhome, check with the strata to make sure that short-term rentals are allowed
- Make sure that you have appropriate insurance for short-term rentals
2. Take In Roommates
If you have the available space, and somebody that you’re willing to live with, taking in roommates can be a great option. Just one roommate can cut hundreds off of your housing expenses each month. I have a friend who has lived like this for almost ten years. He started with roommates when he was dating his girlfriend, and after they were married, they kept the roommates. They now have two children and they still live with a roommate.
3. Live In Your Suite
If you own a home with an in-law suite, you’ve probably either rented it out or considered it. Have you thought about moving in yourself? If your family can fit in the suite you might want to consider living in the smaller space and renting out the house. The house could potentially rent out for enough money to cover your mortgage.
If you don’t want to deal with long-term renters, you can also rent out your place on VRBO or Airbnb as mentioned above. We have friends who have done both successfully and you can earn even more with short-term rentals. It comes with different challenges but it’s worth considering.
4. Live In Your Van Or Trailer
Ah, trailer living. My wife and I did this for 4 years when we were first married. It can actually be really comfortable. If you own a trailer or camper or have the means to purchase one, you could even live in your own driveway and rent your house out. It’s a great way to save money! If you don’t have room on your own property, you could arrange with a friend of family member to park it at their place. If this isn’t an option, there are lots of parks around that offer reasonable rates. Typically they’re much less expensive for long-term pad rentals.
Here are some things to consider when moving into your trailer or van:
- Will you have access to a bathroom or be able to dump your trailer’s black tank?
- Is your trailer appropriate for winter living?
- Is it legal to live in a trailer in your area?
Related Post: 26 Budget Hacks To Help You Keep Your Finances On Track
5. Rent Out Extra Space For Storage
Have you looked into how much storage costs? If you have a bit of land you might be able to rent some space out for people to store their boats/trailers/vehicles. This can be really lucrative but requires some management.
If you’re considering renting out your extra space for storage, here are some things to consider before taking the leap:
- What is the average monthly storage fee for a boat or RV in your area?
- Is this a legal use of your property, or will you require some kind of permit?
- What services can you offer to make your place a more attractive storage option? You might offer access to power, water or some other incentive to pull business away from other lots.
6. Pay Off Your Mortgage
Yah I know, this one’s obvious, but hear me out. You might not have the cash on-hand to pay off your mortgage today, but have you looked at how long it would take if you were actively working towards it? If you could offload your car payment, take on extra work or use some savings maybe you could pay your home off in less time than you think. Even a modest extra payment monthly can cut years off of your mortgage.
Check out this simple mortgage calculator to see how much earlier you could pay off your home by making extra payments each month.
Have you lived legit mortgage-free? How did you pull it off? Let us know in the comments below!