What if I told you that you could live for free and get paid doing it? And I’m not talking about living at home with your parents or living with a friend or relative without paying them rent. I’m talking about a life hack on a whole other level. I’m talking about a house hack – a term coined by Brandon Turner of BiggerPockets.com.
Let me explain how you can live for free and get paid doing it. You may have heard of residential multifamily properties before. These are properties that contain multiple units, like a mini-apartment building. I’m talking about 2-unit buildings (duplexes), 3-unit buildings (triplexes), and 4-unit buildings (quadplexes). They look like this, and they’re in almost every neighborhood out there.
You can actually purchase these residential multifamily properties (1-4 units), live in one of the units, and rent out the other unit(s).
IMAGINE THIS
You purchase a 4-unit building (quadplex) for $320,000, and you live in one of the units. You rent out the other three units for $900 per unit, which means you’re earning $2,700 per month. Let’s say all your expenses – your mortgage, insurance, taxes, utilities, and any other expenses – add up to $2,300 per month. That means you’d profit $400 every single month, just for living.
So, rather than having to pay a mortgage out of your own pocket, or having to pay rent to a landlord, you could be getting paid to live AND you could be living for free.
And even if you didn't find a deal where you profited every single month, you still could potentially wipe out your housing expense, or at least drastically cut it down.
AND THIS...
For example, let's say you currently pay $1,500 each month to your landlord. What if you buy that same quadplex for $320,000? You still live in one of the units, but you're only able to rent out the other three units at $700 per unit, which means you're earning $2,100 per month. Your expenses are still at $2,300, so you'd have to pay $200 per month for your housing.
Compare that $200 to the $1,500 you're currently paying – which situation sounds better to you? Even in this less-than-ideal house hack situation, you've still cut your housing expense by $1,300 EVERY month.
So why isn’t everyone do this? In my honest opinion, it’s simply because most people don’t know about it. That’s why I’m writing this – to spread the message and to show you what’s possible through real estate investing.
HOW DO I FIND A MULTIFAMILY PROPERTY?
Do you think you're ready to buy a residential multifamily property? If so, start talking to a local investor-friendly real estate agent. That’s the fastest way to find these multifamily properties for sale.
If you don’t know an investor-friendly agent, please reach out to me here. I'd explain how you can do this and the process behind it, as well as finding you the right deal. For you, the buyer, it is completely free to work with a real estate agent, since the seller is the one who typically pays the agent.
If you have any questions about real estate investing, or if you or someone you know is looking to buy or sell a home – anywhere in the world – please contact me. I would be more than happy to chat.
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Justin Yurong