Six months ago, I wrote one of my favorite articles of all time, “Mortgage Zero: The Art of Paying No Out-of-Pocket Living Costs.” This article is still my most linked piece ever because it is such a vital topic to me.
Mortgage Zero proposes that you use your home as an income generator. Whenever I say real estate is the best wealth generator, Mortgage Zero is one of the main factors. You don’t need any money to start renting rooms.
My family moved into our third home in March 2020 (fun times) and immediately began to rent out two huge master suites—roughly 14 months. We rent the rooms for $800/each, for a total of $1,600/month. Over 17 months, this equates to $27,200 of rental income directly into the stock market. This money alone will make us rich.
Our Most Stressful Moments as Homeowners
When I wrote Mortgage Zero, we were paying $1,750/month for our primary residence. I am proud to announce that we completed a home refinance three months ago, and our new mortgage is $1,540.
With the refinance complete, and the fact that we still bring in $1,600/month rental income, we are now cash flow positive from our primary residence; we achieved Mortgage Positive. Mortgage Positive is when you receive positive cash flow from your primary residence.
I first became intrigued by the idea of positive cash flow from the book “Rich Dad, Poor Dad” where Robert Kiyosaki famously said that your home is a liability. They stated that your home does not produce income for you—making it a liability.
Now our home is an asset, and I have never been more proud. I talked about Mortgage Zero in two of my favorite housing series, the Creative Financing in Real Estate series and the Pay for College with Real Estate series. Being able to reduce mortgage costs, especially in today’s expensive environment, is a must.
However, bringing in roommates isn’t the only way to bring down mortgage costs and make a profit for your home. I know 95% of Americans (and other first-world countries) refuse to bring in roommates. Sure, I guess. I don’t see the appeal of living paycheck-to-paycheck when you can achieve Stress Freedom from getting roommates. But I digress.
Millennials, Homeownership, and Kids
We can also use business to assist us with paying our mortgage for us and becoming Mortgage Positive. Let’s look at some ways I have discovered over the last six months.
Harvesting Beneficial Insects can be a great way to make use of the space in your land. You can also start an earthworm farm which requires very little room. The compost they produce is top-notch and highly sought after.
Starting a property management business is another work-from-home strategy that people need in this rental environment. If you are good with people and staying organized, then you can excel at this business.
The business of RV life allows you to choose to produce income from an RV. You can set up RV hook-ups and charge people rent to connect. You can also set up your RV as an extra room for Airbnb and monthly rentals. You can add substantial income to your property with an RV.
We Make $50/day in Passive Income
Running a Passive Airbnb Business can give you more than enough income to cover your mortgage. Converting your garage into an entire apartment would be a great idea. You could TAP your home equity to get started if you create an entrance, bathroom, kitchen, and air conditioner; it would be pretty much a stand-alone unit. You would never have to see the Airbnb traveler, and you could clean the home for income or out-source the task.
Depending on your available space, starting a community garden or herb garden is a great idea to connect with nature and make a significant income. You probably have to add a blog or YouTube channel to increase the revenue to a point to cover your mortgage.
Conclusion. As you can see, there are a ton of ways to reach Mortgage Positive. Remember, Mortgage Positive, along with Mortgage Zero, is a mindset. You have to have the attitude to lower your housing costs as low as possible or even eliminate them.’
Once you have the property mindset, everything will fall into place. You can become rich by eliminating your single most significant expense outside of healthcare. In smaller countries all over the world, people share their residences and work together to survive.
Here in America, we laugh at people who work together and call them poor. Well, the last laugh stands with the person with the biggest bank account at the end. Achieving Mortgage Positive ensures that person is you. Enjoy and Happy Investing.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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