189: House Hacking: How to Live for Free and Build Wealth in The Background
06/08/22 • 66 min
1 Listener
House hacking is one of the easiest ways to get into real estate investing. Thanks to its flexible financing options, low down payment loans, and ability to cut your rent in half (or eliminate it), house hacking is truly a phenomenal investing strategy. In short, house hacking is when a homeowner or investor buys a house or multifamily and rents out the other rooms or units while they live in one of them.
The house hacking strategy can be mixed and matched in any way you like. Want to live with a bunch of friends? Buy a three or four-bedroom house and rent out the rooms. Want to have a private space for you and your family? Buy a small multifamily and rent out the other units. No matter what you choose to do, house hacking can help speed up your journey to financial freedom. This is done by reducing the amount of money you spend on rent/a mortgage while also giving you serious tax benefits, instant cash flow, and appreciation so you can build wealth in the background.
In this how-to episode, Ashley and Tony give you everything you need to find, analyze, finance, and buy a house hack. They go over in-depth real estate analysis so you can confidently bring a deal to your lender, partner, or just have peace of mind that you’re making a smart investment. This single home purchase could change your financial future forever, so what are you waiting for?
In This Episode We Cover
What is house hacking and the major benefits of hacking your house
The four ways to build wealth in real estate and three common rookie mistakes
The best ways to fund your real estate deals or house hack property
How to analyze your next property using the BiggerPockets real estate calculators
Property management 101 and how to manage a rental property
How to get your first real estate deal faster with BiggerPockets tools and expert guidance
And So Much More!
Links from the Show
Real Estate Rookie Youtube Channel
Real Estate Rookie Facebook Group
The Real Estate Robinsons Youtube Channel
Who Not How: Stop Doing the Things You Hate, Free Up Time, Be Happier and Richer with Dan Sullivan
Brandon Turner's BiggerPocket's Profile
David Greene's BiggerPocket's Profile
Connect with Ashley and Tony:
House hacking is one of the easiest ways to get into real estate investing. Thanks to its flexible financing options, low down payment loans, and ability to cut your rent in half (or eliminate it), house hacking is truly a phenomenal investing strategy. In short, house hacking is when a homeowner or investor buys a house or multifamily and rents out the other rooms or units while they live in one of them.
The house hacking strategy can be mixed and matched in any way you like. Want to live with a bunch of friends? Buy a three or four-bedroom house and rent out the rooms. Want to have a private space for you and your family? Buy a small multifamily and rent out the other units. No matter what you choose to do, house hacking can help speed up your journey to financial freedom. This is done by reducing the amount of money you spend on rent/a mortgage while also giving you serious tax benefits, instant cash flow, and appreciation so you can build wealth in the background.
In this how-to episode, Ashley and Tony give you everything you need to find, analyze, finance, and buy a house hack. They go over in-depth real estate analysis so you can confidently bring a deal to your lender, partner, or just have peace of mind that you’re making a smart investment. This single home purchase could change your financial future forever, so what are you waiting for?
In This Episode We Cover
What is house hacking and the major benefits of hacking your house
The four ways to build wealth in real estate and three common rookie mistakes
The best ways to fund your real estate deals or house hack property
How to analyze your next property using the BiggerPockets real estate calculators
Property management 101 and how to manage a rental property
How to get your first real estate deal faster with BiggerPockets tools and expert guidance
And So Much More!
Links from the Show
Real Estate Rookie Youtube Channel
Real Estate Rookie Facebook Group
The Real Estate Robinsons Youtube Channel
Who Not How: Stop Doing the Things You Hate, Free Up Time, Be Happier and Richer with Dan Sullivan
Brandon Turner's BiggerPocket's Profile
David Greene's BiggerPocket's Profile
Connect with Ashley and Tony:
Previous Episode
188: Rookie Reply: Networking Tips That’ll Increase Your Net Worth
Networking tips only matter as long as they work. Everyone knows the classic ones—bring a business card, wear a nametag, and look people in the eye. But, when you’re meeting with investors who have big portfolios, it can be easy to get flustered all of a sudden. Maybe you run into your dream mentor at your next real estate meetup—what do you do?
Both Ashley and Tony were able to buy their first rentals and grow their portfolios thanks to networking. At first, they didn’t know what to do or say, and didn’t have many deals to speak of. But, over time, their net worth grew with their networking skills, allowing them to connect with more investors, find more deals, and build lifelong friendships. They’re testaments that even if you don’t have any deals yet, networking could be what brings you your first!
Not used to networking? Here are some suggestions for your next meetup:
Sign up for a BiggerPockets meetup in your city and get your tickets to BPCon2022!
Don’t stick with your clique, remember that networking is there for you to meet new people
Rehearse the question you want to ask if a mentor, speaker, or inspiring investor is at the event
Take a break from networking to write down names, lessons learned, and takeaways from conversations
Don’t know anyone at the meetup? Join a group (they’ll almost always welcome you openly)
And more in the episode...
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Real Estate Rookie Youtube Channel
Real Estate Rookie Facebook Group
Tyler Madden's BiggerPockets Profile
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-188
Learn more about your ad choices. Visit megaphone.fm/adchoices
Next Episode
190: Rookie Reply: What is Due Diligence in Real Estate?
What is due diligence in real estate? If you ask most new investors, they’ll have some sense of what due diligence is, but may be confused about what it really means. Is due diligence when you analyze your deal? Who should you be in contact with during due diligence? How long does a due diligence period usually last? And what happens if your deal turns out to be a dud in due diligence?
In reality, due diligence isn’t all that confusing. It’s simply the time that you, and your partners (if you have them), spend inspecting, double-checking, and re-analyzing the deal. The due diligence period is there for the protection of the investor, so you can use everything in your power to confirm that you truly are getting a great deal. But, before you start calling inspectors, make sure you follow some of these more granular steps that could save you a fortune in the future.
Never done due diligence before? Here are some suggestions:
Work with a seasoned real estate broker, agent, or attorney who can catch things you won't
Double-check that your financing options still stand if you find anything wrong with the property
Talk to the local city government or code enforcer to ensure prior work on the property was done correctly
Calculate out what the cost of repairs will be for the property once you’ve gotten an inspection
Don’t fall in love with a deal and be prepared to walk away if you find something that’ll kill your exit strategies
And more in the episode...
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Real Estate Rookie Youtube Channel
Real Estate Rookie Facebook Group
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-190
Learn more about your ad choices. Visit megaphone.fm/adchoices
If you like this episode you’ll love
Episode Comments
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/real-estate-rookie-39098/189-house-hacking-how-to-live-for-free-and-build-wealth-in-the-backgro-21330619"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to 189: house hacking: how to live for free and build wealth in the background on goodpods" style="width: 225px" /> </a>
Copy