BiggerPockets Real Estate Podcast 352: Bonus Audiobook Excerpt: The House Hacking Strategy
Oct 19, 2019
Discover the financial benefits of house hacking compared to traditional home buying. Explore various house hacking techniques for wealth building and financial independence. Learn how renting out rooms can help you save money and generate income.
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Renting's Negative Impact
- Joe, a renter, pays $18,000 in rent annually without building wealth.
- Over 30 years, he spends $915,000 on rent, resulting in a negative net worth impact.
Homebuying's Limited Returns
- Mary buys a $300,000 house with a 3.5% down payment, but her expenses outweigh equity gains.
- Her net worth is negatively impacted by $285,000 over 30 years.
House Hacking's Power
- Sally house hacks a $300,000 property, rents out rooms, and lives for free.
- Over 30 years, she gains $2.6 million, showcasing house hacking's potential.