Why your exit strategy is important when House Hacking

Happy Humpday House Hacking!! Okay so everyone probably knows what an exit strategy is in life, but some may not know how that applies to House Hacking.Today we’re going to talk about what is an exit strategy, why it’s crucial when House hacking and, crunch the numbers between a purchase with an exit strategy and a purchase without an exit strategy.

Okay so in real estate, an exit strategy

    1.  When you plan on selling it
    2.  How you plan to do that
    3.  How that benefits you from a profit standpoint

Now, why is this important in House Hacking?Well, if you didn’t know by now, if you are a House Hacker you are essentially a real estate investor.And in real estate you need to understand the following concepts:

    1.  Real estate investors buy properties based off of logic and numbers, (not emotions) with their exit strategy in mind.

    2. When you purchase a property based on emotions, hands down you are over paying.

    3.  The best time to purchase real estate is NOW, not next we…

What the heck is a NOI (Net Operating Income) and why it's Important

Okay so hopefully by now, you understand the benefits of House Hacking and ready to make some moves.If not, check out our previous articles to recap.So today is all about learning
1) What is the NOI 2) Why it’s important to understand as a House Hacker 3) Run some numbers so it all makes sense.
Okay are you ready. Leggggoo!

What is the Net Operating Income (NOI)?The Net Operating Income, known also as NOI, tells you the amount of money your house will generate before paying your mortgage and before income taxes.So it’s basically your net rent.
The formula is really simple: Taking the amount of rent you ReceiveSubtract all the expenses related to operating the rental.
This could be, utilities that you pay, property management fees, vacancy fees, maintenance supplies, basically any expense that you pay out of pocket to operate your rental.Keep in mind you can calculate the NOI on a monthly or yearly basis.
So why is this number important for house hackers?Because it tells you how much of your mo…

5 Reasons to STOP renting and START House Hacking

So here’s the deal.I’m sure you know that when you are a renter, you are paying someone else so they can get rich. (If you didn’t, now you do)So the solution would be to purchase a house and make yourself rich, right?Well, in some cases, that’s probably not the best idea, but through House Hacking, you get to have your cake and eat it too.Check out the 5 reasons why you need to stop throwing away your money and start House Hacking.

So let’s get right into it!

#1 Using OPM (Other peoples money) for your gain.When you rent, your landlord is using OPM, which is your rent money to pay down their mortgage on the property while gaining equity or pocket that money as income.

When you stop renting and start house hacking you not only get to keep your money but now you become the real estate tycoon and have other people pay down your mortgage and which leads me to number 2 - earning money while you sleep

#2 Earning money while you sleepAs stated before, renting does not give you this benefit, nor …

The Truth about House Appreciation Profit

Did you know the amount of money you thought you made from your house appreciating is actually not true? And when I say the amount, I’m talking about the profit.Today we’re going to breakdown the numbers and determine your TRUE profit from selling your house.
Be sure to pay attention to the following when watching the video:
1) Why the conventional approach to calculating profit from house appreciation is a lie 2) How that approach causes you to actually loose money 3) Show you how you can stop loosing money and start earning through House Hacking.

Be sure to follow our YouTube Page - House Hacking Homegirl and our Facebook and Instagram pages for more awesome stuff!

How to pay off debt faster by House Hacking

House Hackers! Whats going on? Today let's explore how to kill bad debt faster without pinching pennies through House Hacking. So you might have some credit card debt or a loan that you would like paid of faster, or better yet - the dreaded student loan debt. Through house hacking you’ll be able to pay off these debts much faster without reducing your existing expenses.

Generally when we hear debt reduction, we think about either reducing current expenses and/or generating more money to make additional payments.
While these methods work, theres always an opportunity cost involved.If you reduce your expenses, maybe you’re missing out on some things that make you happy.If you generate more money, you’re probably losing some of your existing free time to work a 2nd job.
With househacking you’re able to generate passive income - which is income that keeps flowing without you having’ to exert active energy to produce income.
Let’s takea look at an example:
You make 4000/month
You curren…

How to get Paid to live in your House

Hey House Hackers! Today, I'd thought it would be nice to show you how to get paid to live in your house instead of shelling out the money for a large monthly mortgage payment. So, I’m an advocate of finding ways to work smarter not harder. And if increasing your financial wealth is one of them, this video is for you.
So house hacking it’s all about the numbers, so let’s jump right its an take a look at a couple of examples: Example A: - traditional house purchase You found the perfect house with modern upgrades, perfect neighbors and purchased it for 250,000 which is 5K above the list price because you had to have it.You’re a private kind of person and don’t mind having unused space so you have all 5 bedrooms and 3 baths for you and your significant other and your dog.You’re mortgage comes to 1,500/month and in 6 months your water heater needs to be replaced so you spend 1500.That comes to $10,500 out of pocket.
Example B: Same house for 250,000 and this time we pay 5k over its pr…

Welcome to the World of House Hacking!!!

Ladies and Gents....It's time to look at homeownership from a different perspective. Times are changing and disruption is everywhere. What if there was a way to own a house and not have to worry about being tied down to a certain location, use OPM (other people's money) to gain equity and reduce your mortgage payment by half or more?  The answer is House Hacking and every Humpday, I'll be sharing all kinds of info about househacking and how it can change your life! It's certainly changed mine. Check out our first episode.

So about this house hacking thing……What if I told you owning a home allows you get rid of your debt/student loans faster, actually pays you an income to live in your house, travel or build a real estate empire.Now if this is your first time hearing about house hacking hacking, not to worry, because the reality it, it’s the best thing since sliced bread.

You see the traditional way of buying a house is overrated and dead. The white picket fence and 2.5 k…