The Deed

Real estate mogul: First-time homeowners should use this trick to live for free

When it comes to buying a home, people have strong opinions: One camp says not prioritizing homeownership is "the single biggest mistake millennials are making," while the other says houses are "traps that prevent people from ever having enough."

Real estate mogul and host of CNBC's "The Deed" Sidney Torres offers young people a third way. "If you're buying your first home, I think it's very very important that you look for something where you can have a 'double' — where you can live on one side and rent the other," he says.

In New Orleans, where Torres is from and currently resides, this type of property is called a "shotgun double," he tells CNBC, where you split your home and collect rent: "So essentially you're living, kind of, for free."

Sidney Torres of "The Deed"
CNBC | Getty Images
Sidney Torres of "The Deed"

By renting out a side or upstairs apartment, you can use the extra revenue to pay down your mortgage more quickly.

"You might be a little inconvenienced with sharing, but in the long run, it's going to make a big difference because it's basically like a savings account," says Torres, who has made millions developing real estate. "The value of the neighborhood is going up, the house is rising in value, and you're paying down your debt. You're basically building up your savings account and you have a place to live."

Plus, if you ever have a family and move into a single family home, or simply want to live on your own, you can then rent out both halves of the home, Torres notes: "And then guess what? You have an investment property. It's a good first step of getting into the real estate world."

Watch Sidney Torres in CNBC's "The Deed," Wednesday 10 p.m. ET

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