I have been preaching about the incredible benefits of renting rooms for over two years. And I will continue to beat the drum until a few people begin to take notice.
There is simply no better way to become wealthy for the average person. The return on investment for renting rooms is infinite, which means you are printing money.
All it costs is a change in mindset (or perspective). It’s tough to start sharing your space with another human, but you will come around once you see the benefits.
Time for a shift in mindset. I have spent 11 of my 23 years in the military overseas. My wife is from a country named Turkmenistan. Why do I mention these facts?
Most people overseas live together as an extended family. They don’t run off and attempt to build their empire away from the family.
They work together as a father, son, and grandson. They build upon the resources that exist in the family and grow the pot of wealth over time.
A King’s ransom. Can you imagine each prince had to build his own empire? The king would kick them out at age 18, and they would have to go to war.
They would fight a war for twenty years to gain a small piece of land. Then they would spend the next 20 years cultivating their land, building castles, and growing a team of helpers.
It would take that Prince 50 years to make any progress, and in the meantime, he would kick out his children so he could keep building. How ridiculous does this sound? Yet, this is what we do in America exactly.
We must work together. With the impending recession, we must work together to survive the onslaught of job losses, pay cuts, and increased prices.
I know it feels good to have adult children that can provide for themselves. You believe they can brave the world on their own. However, it will be much more challenging for them to navigate this recession alone.
Why rent rooms? You won’t understand the power of renting rooms until you get that $800 in your pocket. It is the purest form of passive income, and you can start tomorrow.
Is your roommate going to annoy the crap out of you? YES! It is almost guaranteed to happen. However, you’ll get through it with the right mindset and financial goals.
Renting rooms allows you to get ahead of your debt, create cash flow, build an emergency fund, and start investing.
Renting rooms also doesn’t require any overhead, just people skills. Renting rooms can be a business or a means to an end.
Knowledge is power. Once you understand how to rent rooms correctly (there is a wrong way), you’ll arm yourself with a lifetime of confidence.
You’ll know that at any time, you can create an income stream to help you get through any situation. This knowledge is invaluable, especially since the world changes dynamically.
The wrong way to rent rooms. I speak from experience on this one. Do not try to lower your price on your room rental to get a tenant faster. Let’s say you advertise at $500/month.
You’ll get a bunch of low-quality applicants. It is better to increase the value of your room by adding extras. That way, you charge $800/month and get a much higher quality tenant.
You can increase value by adding cable, Netflix, refrigerator, microwave, individual bathrooms, and higher quality decor. Everyone wants to live like a king or queen, so help them arrive at this point.
Most people have no taste and need help with designing a room. You can study rooms at furniture stores and put things like a desk, recliner, and sofa couches (for more space) in the room.
Renting rooms vs. a recession. Is your job secure? If so, should you rent rooms? Absolutely. You can build a more significant dividend portfolio or emergency fund with the additional cash flow.
The truth is that we don’t know what’s going to happen. The Federal Reserve wants to crash the economy via the housing, stock, cryptocurrency, and bond markets.
The best thing we can do is prepare for winter like a bear. We gather as much cash flow, savings, and dividends until winter (the recession) passes.
Take the recession seriously. Think again if you believe you will make it through the recession unscathed. At the very least, someone close to you will suffer.
This recession may become more extensive than in 2008. We have been in an asset bubble (too much money in the economy) for over 14 years. Now, the economy will deflate in roughly 6-12 months.
How I am preparing for the recession. I am stacking chips (saving money) in preparation for the downturn. I have two rental properties and two rental rooms.
The rent on all four units is increasing to match the housing demand. One benefit of renting rooms is that you’ll have full pricing power.
I already receive $1,000/month in dividends. I still invest $2,000/month into dividends and save the rest in cash.
I want to have a massive cash balance and enormous cash flow. My two room rentals ensure I can keep building my emergency fund. Instead of working overtime or starting a gig, I receive cash flow from my tenant.
Your friends won’t understand. Your friends will not understand why you have roommates. They will think you are broke. However, they are broke and jealous because they want the cash flow.
These aren’t your friends, by the way. People laughed at us when we took on roommates three years ago. Today, my wife and I are approaching $300,000 in savings and investments, and everyone is quiet.
If you cannot handle rejection or being different, renting rooms isn’t for you. However, if you do what everyone else does (spend money), you’ll have what everyone else has (no savings).
Conclusion. You become wealthy by serving others. There could be a fantastic college student, young professional, or senior citizen that will appreciate your room.
I believe room rentals will be the norm in roughly 3-5 years. Trying to live alone in a massive 3,000-square-foot house is a non-starter. We must share with others because it keeps us humble and sets an excellent example for our children.
The book “Find Your People” explains that we are at an all-time low of happiness and an all-time high of depression. We think living alone, being single, and only helping ourselves is the winning formula.
However, when I go overseas, almost everyone is happy and content. The only miserable people are those who attempt to follow Americans into the world of materialism.
Renting rooms is a great way to open your heart, grow your resources, and give back to someone who will appreciate your kindness (and pay you). Good Luck!
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