Paying for housing is one of the most costly expenses we pay just to live. If you can make house hacking work, you need to do this now. AJ outlines how this will give you one of the biggest wealth building tools in the game.
Buy a house or multiplex up to 4 units
3.5% down with FHA loan
Live in one of the rooms or units for at least 1 year
Rent out other rooms or units for more than or equal to the home payment
Let’s look at a break down
Austin, TX, a multiplex is roughly $385,000
3.5% is $13,475
Estimated monthly cost: $3,081
Total Money needed: $40,425
Est Maintenance: $26,950
$1500 per unit in rents
1500 * 3 = $4,500
cashflow is $1,419
$17,028 in cash flow first year
4% appreciation = $15,400
first year principal pay down = $5000
Total First year income = $37,428
Year 1 ROI: ~93%