House Hacking 101


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%

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