“The House Hacking Strategy” by Craig Curelop talks about one of my favorite topics—house hacking. Indeed, my wife and I have built a great deal of wealth by house hacking, so it is great to read the “science” behind the magic.
There are many ways to house hack, but two of the most popular are renting rooms and living in a multi-family house. Finding a duplex, triplex, or fourplex is challenging, so renting rooms is ideal in most situations.
Housing is our most costly expense, so reducing your housing bill to zero is a massive win. Even better, receiving positive cash flow from your primary residence can allow you to build wealth faster than almost any other legal method available.
1) When you create positive cash flow from your home, you are actually building two separate income streams. Let me explain.
2) If your mortgage is $1,500/month, and you receive $1,800 from two roommates, your cash flow is $300. However, instead of just including the $300 net cash flow, you have to factor in the $1,500 you would be paying. You are actually positive $1,800.
3) No, this math sounds funny until you start house hacking. My wife and I started with -$77,000 and now have +$220,000 in the bank in less than three years. I account for most of this wealth swing from this favorable cash flow math.
4) The author calls this calculation the net worth return on investment—I call it magic. It’s hard to describe how easy your life becomes as your net worth grows every single month.
5) House hacking, and real estate in general, is all about math. Look at the numbers, and if they add up, you can make the situation work.
Robert Kiyosaki describes an asset as anything that puts money in your pocket. A liability is something that takes money from you. House hacking turns your biggest liability, your home, into a huge asset.
When your home cash flows, you literally turn the tides on your wealth situation. Instead of fighting against your home to build wealth, you work together as one team.
When we started house hacking, $100,000 seemed so far away; now $1 million is a few years away. What a fantastic journey we have traveled.
If you are curious about the massive benefits of house hacking, grab this book. As a bonafide house hacker, I can attest to everything the book says. Only a few Americans will use this technique to build wealth, that’s why only a few are wealthy.
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