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

Kathleen Elkins

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."

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."

Also From CNBC

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

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