How Even an Average HOUSE HACK Can Make You a MILLIONAIRE $$ |
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If you’re just starting out and considering buying your first house hack, check out my free ebook: The House Hacking Success Checklist. It will go over 7 things that you should be working on and making sure you do BEFORE you buy your first house hack!
Check it out here: https://mailchi.mp/a97196c03faa/house-hacking-success-checklist Join my Free House Hack Mastery Group over on Skool.com, link here: https://www.skool.com/house-hack-mastery-2722/about DISCLAIMER: please note that the information contained in this video is for educational and entertainment purposes only. You should always consult your own attorney and your own financial and tax advisors before making any legal or financial decisions. This video is not intended to and does not create any attorney-client relationship between the content creator and the viewer. The views and opinions expressed in this video belong solely to the creator and do not reflect those of his law firm or any of his business partners. Affiliate / Video Links and Free Giveaways: Rental property analysis video playlist: https://www.youtube.com/watch?v=4Y5fU8-6w6Y&list=PLfDCjb-_0b5agehtuIf3HApx81raltz1a My free sample rental application: https://mailchi.mp/3050a8472b29/sample-rental-application Watch the video here: https://youtu.be/zevuffnyyRc My favorite tenant screening service (RentPrep.com): http://bit.ly/RentPrepAffiliate - sign up for a free account - have your applicants pay for tenant screening directly to the site - no more need to collect application fees Watch my review and tutorial here: https://youtu.be/rNRq9BBOXuY Best platform for finding off-market real estate deals (PropStream.com): https://trial.propstreampro.com/succeedrei/ - sign up for a free 7-day trial to test it out! - tons of features for finding and marketing to motivated sellers and cash buyers Watch my review and tutorial here: https://youtu.be/ua3zjhrvgzs Roofstock platform for finding on and off market rental properties for sale: http://roofstock.3k3q.net/c/2953139/995437/8853 -------------------------------------- My attorney profile and contact information: https://www.woh.com/attorneys/79/vitaliy-volpov/ My blog: http://www.succeedrei.com My real estate brokerage: https://www.serenityrealestate518.com/ Facebook pages: https://www.facebook.com/SucceedREI/ https://www.facebook.com/serenity518/ ---------------------------------------- The purchase price of an average duplex in the United States is $250,000. With an FHA loan, you can purchase an owner-occupied duplex with just 3.5% down and a total up-front investment of approximately $21,250. The annual cost of financing this property with an FHA loan would come to $15,871.80 (including principal, interest, and mortgage insurance). The initial cost of the operating expenses of the property would be approximately $11,400 per year (including taxes, insurance, water, sewer, garbage, repairs, maintenance, capital expenditures, and vacancy). Given the average 3.2% annual rate of real estate appreciation, this duplex should be worth approximately $643,177.62 after 30 years. The initial average expected rent on an average duplex like this is $1,200 per unit per month. This results in the initial gross rent from the tenant-occupied unit of $14,400 per year and the initial gross rent savings from the owner-occupied unit of $14,400 per year (for a total annual gain from rents of $28,800). The average rent appreciation over the last 40 years has been 8.86% per year. Rent appreciation in 2021 has been even greater at between 11% and 13%. Assuming a more conservative rent appreciation of 4% over the course of 30 years of your ownership of this property and after subtracting the financing expense and operating expenses (also adjusted for inflation at 4%) the total rent/rent savings profit would come to $499,723.92. So, over the course of 30 years of ownership, the total gain that you may be able to realize from owning a single, average-priced duplex would come to $1,121,651.54 ($643,177.62 + $499,723.92 - $21,250). This is as basic of a real estate investment as one can make, almost anyone with a middle class income can afford it, and it does not require one to be an expert real estate investor. But, of course there are numerous ways in which this type of investment can be even more profitable: (1) finding an undervalued, off market deal rather than paying full market price, (2) forcing additional appreciation by improving the property, creatively reducing expenses, or increasing under-market rents, (3) repeating this strategy once a year for several years in a row to acquire several similar duplexes that can produce similar returns simultaneously, and/or (4) instead of pursuing this strategy with duplexes considering doing it with triplexes or quads to further multiply the gains. #HouseHacking #HouseHackRealEstate #SucceedREI |