The equity in a home is typically double that of retirement accounts for average Americans, according to Pew Research. Homeowners in desirable areas can leverage their homes to generate wealth uniquely, creating a niche wealth-building strategy for fortunate few homeowners.

In expensive rental markets like Los Angeles’ South Bay area, renting out a property for over $10,000 monthly can provide significant income. By purchasing a new property with rental income covering both mortgages, homeowners can own two premier properties without additional housing costs.

Renting, renovating, and flipping a property can boost its value, potentially offering a tax advantage. Homeowners may exclude up to $250,000 in capital gains from selling their primary residence if they lived there for at least two years.

While the rent, renovate, and flip strategy can be profitable, success is not guaranteed. Working with real estate professionals and understanding the risks involved are essential. With careful planning, homeowners can turn their high-value asset into a wealth-producing machine.

Read more at Yahoo Finance: Here’s a Slick Way To Use Your Home To Build Wealth