Dollars and Hops

040 | What Is A House Hack? | Why House Hack? | Employee Work Trends, Work From Anywhere, And Be Your Own Boss

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Money Hack of the Week:

Spray and forget: Do you powerwash your house or deck every year?

  • Spray and forget instead of power washing - save time and money

    • Rant - Get upside

    Main Topic

    What is house hacking?

    • House hacking is a real estate strategy that can help you live for free or close to free - dramatically decreasing your monthly expenses
    • Great way to start investing career - whether that be in real estate or not
    • Premise is simple - you buy a multi-unit property… could be a duplex or triplex (meaning 2 or 3 separate entrances to the property) - Live in 1 and rent out the other 1 or 2 units.

      • How to rent out the other units:

      • Long term tenant lease
      • Short term rentals - think Air BNB and VRBO

        • Ways to house hack:

        • Buy a duplex, triplex, fourplex, etc…
        • Buy a house with an ADU - Accessory dwelling unit
          • ADU is a non-attached dwelling on the same property as the primary house.  Can rent it just as you would a duplex or triplex.
          • Rent out a single room in your existing home

            • House hacking as an investment strategy: Scott Trench (Set for life)  and David Greene

            • Can house hack and buy a new house every 1-2 years
            • Why 1 year: Can buy a new house every single year and qualify for low down payment as it’s your primary residence, and then simply move after a year and turn all the units into rentals.
            • Why 2 years?  You could sell the property and pay no capital gains tax on any earnings as long as you have lived in the property for 2 of the last 5 years.
            • This strategy will dramatically decrease the amount of time it takes to build wealth.

              • Why house hack?

              • Allows you to live for a dramatically reduced cost in most cases.  Allows you to sometimes make income while someone else is paying for you to live.
              • Take the excess cash flow from house hacking and reinvest into other ventures such as more real estate or stocks
              • Fastest way to build wealth - your house is generally your largest expense and it’s not even close

                • Who is house hacking for?

                • Single people
                • Married couples with or without kids
                • Could really be anyone
                • People that don’t mind sharing common space in certain circumstances
                • People that feel like they can’t afford a monthly payment for a house even though they may qualify for a house.

                  • Questions that need answers

                  -PLEASE WRITE US AT [email protected]

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