367: Finance Friday: Tips to Build a House Hack STACK in Your 20s

Couch flipping may be the best side hustle you’ve never heard of. It’s so lucrative that today’s guest Parker used couch flipping to save up his down payment for his first house hack! Of course, who could have assumed otherwise from someone like Parker? He’s a financial analyst who made an intelligent move from expensive Boston to sunny Tampato house hack for the first time with one of his best friends. He’s making some impressive moves at a young age, but he still has questions about what to do next.

Although Parker is thankful for buying the house hack, he doesn’t know what he should do after he moves out. Does he sell the property, keep it as a rental, transfer it into an LLC, or go back to renting as he saves up enough money for the next house hack? He also has some very pressing capital expenditures on his mind, like a new roof, HVAC, and other large system replacements that could cost him and his house-hacking partner tens of thousands out of pocket. These replacements won’t be cheap, but they could help improve the property before he potentially sells.

And like most FIRE-minded twenty-something-year-olds, Parker needs to know where the highest ROI for him is. Does he continue to save up to buy another house hack, or should he be contributing to his tax-advantaged Roth, HSA, and 401(k) accounts? Plus, with such an unbelievably lucrative side hustle like couch flipping, how much time should he put into building this income-replacing revenue stream? Parker is on a great path, but with guidance from Mindy and Scott, he could reach financial independence even faster!

In This Episode We Cover

House hacking explained and the benefits of building a house hack stack early on

When to transfer an investment property into an LLC (and whether it’s even worth it)

How to calculate cash flow on an investment property to ensure you’re turning a profit

The “shotgun” clause every investor should sign when partnering on a deal

Couch flipping and how this side hustle can make you thousands every month

Capital expenditures and how to estimate your costs for big future repairs

And So Much More!

Links from the Show

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BiggerPockets Money Facebook Group

BiggerPockets Forums

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Mindy's Twitter

Scott's Instagram

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Check Out Mindy’s 2022 Live Spending Tracker and Budget

Click here to check the full show notes: https://www.biggerpockets.com/blog/money-367

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