Strategy 30 of 107
Rent out the driveway, garage, shed or attic for parking and storage
What it is
Measure the space and list it for parking, RV or boat storage, or dry storage on a neighbor-to-neighbor platform.
Steps
- Measure the space and list it for parking, RV or boat storage, or dry storage on a neighbor-to-neighbor platform.
- Write a short agreement: access hours, what may not be stored (fuel, hazardous items), and who insures the contents.
- Send the monthly rent to principal.
Repeat: Monthly.
Measure: Monthly rent received.
Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.
Risks
- HOA rules or local zoning may forbid it.
- Liability if someone is hurt; check your policy.
- Rental income is taxable.
Who it fits
Average household, Single, College students, No high school diploma, No college degree, Grandmas and grandpas (62 and over), Newlyweds
Needs
A spare room, unit or space to rent
How predictable
Depends on people or program rules (tenants, family, IRS records, lenders)
A worked example (hypothetical, not guaranteed)
Picture a hypothetical household (average household). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.
They follow the steps: measure the space and list it for parking, RV or boat storage, or dry storage on a neighbor-to-neighbor platform.
Suppose it brings $600 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 16 years 3 months instead of 30 years, saving about $196,219 in interest. To finish in five years, they would still need about $3,374 a month more from other strategies. That is why the five-year sequences stack several at once.
The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.
Sequences that use it
- Home side-gig stack: Booking days, parking or storage space, and a room or unit each add a little. Every net dollar goes to principal; the total from income stays the same.
- Sharing-economy stack: Small, steady side income from things and skills you already have. Track the net, pay the tax, send the rest to principal.
Sources and more information
Where to get help
Related strategies
- 29. Rent the home by the day for photo shoots, filming and small events
- 31. Put the land to work: hunting lease, timber sale, billboard or cell-site lease
- 27. Build or convert an accessory unit and rent it
- 26. First-time buyers: a Mortgage Credit Certificate
- 35. Home sharing through a nonprofit matching program
- 36. Landowners: a genuine conservation easement on land you keep