House hack: Forget having to make a rent payment or come out of pocket for a mortgage every month. This is exactly how you can essentially live for free by investing in multifamily real estate as a primary residence. Plus - if do it right, you can literally GET PAID to live for free. Here's how.
Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c
When you already have some savings and want to make the jump to becoming a home owner, one thing most people overlook is multi-family properties. These include duplexes, triplexes, and fourplexes. What makes this unique is that in addition to your unit, you have other units that you can freely rent out which can cover your entire ownership cost of the property. When you buy these properties correctly, your rental income from the other units will cover your entire mortgage, property taxes, insurance and repairs, essentially letting you live in one of the units for free. Not only that, but you can apply the rental income towards your loan, meaning you can often qualify for a much larger loan than normal. You’re also paying down your loan and building equity at the same time.
My biggest recommendation to maximize the rental income is to look for vacant multi-family buildings that need cosmetic upgrades. This means you can immediately begin updating the property when you buy it - new floors, paint, bathrooms, landscaping are all cheap and make a significant improvement for rental income.
Now of course, there are downsides of doing this. First of all, you will have to manage tenants and that can be a part time job in and of itself. You will also have some shared common areas - it’s not any worse than an apartment, but you will be in close proximity with your tenants. It’s not for everyone.
But the good news is that when you’re ready to buy a house or upgrade, you can rent out your unit and you have a great cash-flowing rental property for you to keep long term. Essentially when this is paid off, it could be your retirement money that keeps cash flowing month after month. Or, you can live there long term and bank as much money as you can knowing that you don’t have be out of pocket every month for housing payments.
Add me on Instagram: GPStephan
Add me on Snapchat: GPStephan
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Learn how to make money as a Real Estate Agent, build your network of clients, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: $50 off with code ThankYou50 for a limited time: https://goo.gl/UFpi4c
When you already have some savings and want to make the jump to becoming a home owner, one thing most people overlook is multi-family properties. These include duplexes, triplexes, and fourplexes. What makes this unique is that in addition to your unit, you have other units that you can freely rent out which can cover your entire ownership cost of the property. When you buy these properties correctly, your rental income from the other units will cover your entire mortgage, property taxes, insurance and repairs, essentially letting you live in one of the units for free. Not only that, but you can apply the rental income towards your loan, meaning you can often qualify for a much larger loan than normal. You’re also paying down your loan and building equity at the same time.
My biggest recommendation to maximize the rental income is to look for vacant multi-family buildings that need cosmetic upgrades. This means you can immediately begin updating the property when you buy it - new floors, paint, bathrooms, landscaping are all cheap and make a significant improvement for rental income.
Now of course, there are downsides of doing this. First of all, you will have to manage tenants and that can be a part time job in and of itself. You will also have some shared common areas - it’s not any worse than an apartment, but you will be in close proximity with your tenants. It’s not for everyone.
But the good news is that when you’re ready to buy a house or upgrade, you can rent out your unit and you have a great cash-flowing rental property for you to keep long term. Essentially when this is paid off, it could be your retirement money that keeps cash flowing month after month. Or, you can live there long term and bank as much money as you can knowing that you don’t have be out of pocket every month for housing payments.
Add me on Instagram: GPStephan
Add me on Snapchat: GPStephan
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
have they patched this glitch?
Following
Solid stuff, Graham! With me moving out next summer, I’m debating house hacking instead of paying rent. Will continue doing my research and tapping into my connections as a new real estate agent.
For this to work on the property tax in I suggest not moving to states with high property tax like my state of Illinois which has the second-highest property taxes in the United States next to New Jersey. NOTE: YEAH YEAH property taxes are high everywhere but those two states will drain you.
I’m so happy to see how much your channel grew
I’m 4 years late but I have a question. Why does out of pocket cost not equal the amount you pay down on your mortgage? Where does that extra money go?
How come all the rental gurus live in the most horrible places to attempt to make it in life? Why not live in TX or FL?
I’m about to enter into my profession after doing years of law school . I’ve been advised to do this exact thing. “You are coming from poverty. You can house hack. Live fairly well. And your expenses are so low you will literally be able to bank so much at the end of the month to throw into the market
not true that the loan is the exact same as a single family home. The interest rate is higher for a multi unit and also you have to put 25% down at minimum
Which Realtors specialize in finding rentals for buyers?
This was extremely helpful, thank you very much Graham.
I also understand that I need the down payment
I’m really trying to understand but so far that I know is that I need to have good credit or great credit to get the loan first
Can you do this and go to school (I’m a third year student !)
Do you have HOA’s included in the property?
Hey i live in Los Angeles and im looking for a duplex or triplex if possible i would like to find the websites or a good broker to help me. I have 20 thousand save and 15 thousand in stock trying my luck in order to get to my goal of home ownership
Problem where I live… the kind of unit in your example is 3.5 million 🙁
Great video comment and like #21
Is buying a property in Los Angeles in a rent controls zone a bad investment?
“SunCor Financial MPI review”
Good stuff man. Thanks!
Do you believe in living off of rental property income?
What about utility bills? or am I missing something.
what about building a fourplex? Also, should i become a multifamily property holder "LLC business" to protect me from lawsuits, double taxing and bankruptcy?
👏
What do you think about hiring a Property manager and just being the owner