| by Kenneth Chase | 8 comments

How I Live Rent Free [House Hacking] 💰


hey there Tiffany Thomas with wealthy
Tiffany dot com and in today’s video I’m gonna be sharing how I am able to live
free of charge because I know housing is usually the most expensive expense that
people have so if you can reduce that expense you are going to be saving a lot
of money and if you guys have been to my channel before you’ll notice the
background is a little different I’m actually house-sitting slash dog
studying cat setting for my sister so if you hear dogs in the background you’ll
know why and if you see a cat go across the couch you’ll know why so if you guys
are ready to dive in click that like button and I am going to get started
alright so how am I able to live free of charge I want to give you a little
backstory first so I actually purchased my first
property back in 2005 and it is a townhome with three bedrooms in it and
when I purchase that I was fortunate enough to already be living in the place
my roommate who had owned the place ended up getting married and moving out
of course and she wanted to sell the place because they were moving to Texas
and it was around the same time that I was looking for a place to buy so I
ended up buying the place where I was already living and I already had two
roommates in there so I ended up leaving those two roommates in my townhouse and
they were able to help me pay my mortgage back in 2005 rent prices
weren’t quite as high as they are now so I was able to still save a significant
amount of money by having roommates but my mortgage payment and my HOA payment
the homeowners association payment which is a fee that is charged a few owning a
townhome or a condo or even some single-family homes so they weren’t
quite covered by what my roommates were paying me but fast forward a few years
later quite a few years later to 2016 I ended up moving into another place and I
kept my old place left my roommates there and then moved into this new place
which was also a 3-bedroom townhome but it had an unfinished basement there’s
the cat tell you guys so I was able to finish my basement and ended up moving
into the basement and rented out those three rooms upstairs another guest
appearance by penny the beautiful cat but I finished
my basement moved into the basement rented out those three rooms upstairs
and by doing so I was able to have my mortgage payment and my HOA all covered
by what my roommates were paying me my taxes are also included in my mortgage
payment and I do pay my entrance separate but that is still covered as
well I actually end up being that positive with this property because of
my roommates so I’m getting paid a few hundred dollars to live in my place so
let me share how I was able to acquire this property so I had my first property
from 2005 and I had roommates there so they were helping to pay for the
mortgage payment and then I bought another property a condo which is just a
strictly rental property I never lived in that property and that was giving me
positive cash flow so I had money coming in and I had a full-time job so I was
saving a good portion of my money and by doing so I was able to save up to
purchase another property and since I was going to move into this property I
didn’t need to put 20% down because it wasn’t strictly a rental property I
could put down 5% or there are some lenders that will even do lower but I
put down 5% on this property so I was able to move into this property and get
roommates in there and then ended up finishing my basement so it would be a
four bedroom property instead of just a three bedroom property which made it
easier to put another roommate in there and increase my cash flow from my rental
income so by being willing to sacrifice a little bit right now and have
roommates living with me I’m able to live free of charge which is a huge
savings because like I said before that’s typically the largest expense
that people have is housing so if you can reduce that cost or make it zero or
even make it positive then you are going to be saving so much more money and you
can put that toward something else that’s more important to you maybe you
need to pay off some debt or you need to build up an emergency fund or you want
to start investing or even invest more so by essentially using this house hack
and having roommates move in with me I am able to live free of charge and it’s
also nice because I have this property that is appreciating over time it’s
becoming more valuable over time and I can write off a lot of the expenses so I
can write off the interest that I pay for the property and the taxes that I
pay all while the property is appreciating over time I plan to hold my
properties for the long term and I really love this idea of house hacking
because if you’re able to purchase a property you can just do a small
percentage for the down payment like I said aided 5% for my property my
current property and some lenders will let you do even less than that for a
fraction of the price that the house is worth you can move into that place and
get tenants in there or roommates and create a cash flowing investment and if
you have that long-term mindset then you’re able to build that equity in the
home over time and eventually pay it off which will increase your cash flow
because you won’t have your mortgage payment anymore of course you’ll have to
pay taxes on it still but that mortgage payment will be gone so the principle
and interest that you’re paying will be gone and that will drastically increase
your cash flow and if you guys are curious about the actual numbers I have
another video which I will put a link to below and you can check that one out and
I go over how much I paid for each property and how much the value is right
now and how much income I’m receiving so you can get more details if you’re
interested in that but I just wanted to share this quick idea with you guys that
you can live free of charge you can house hack and reduce that largest
expense your housing expense right now and put that money towards something
else and honestly I don’t mind living with roommates I am single so I don’t
have children or anything like that and some of my roommates have become some of
my best friends there’s actually four of us that are really really tight and
they’re all married actually but we still do stuff together and we have a
little group text message so I have built these great friendships by having
roommates so I don’t really mind doing that and I’m giving them a nice place to
live and if you’re curious to know how I run things in the household with
roommates I have another video that I created with more
detail about that so I will leave a link below and you can check that video out
so you can think about little different sacrifices that you can make now that
are going to make a really great impact over time and I think house hacking is
one of these things because housing is the largest expense typically for most
people so if you can reduce that or even eliminate that expense you’re going to
have so much more money to put towards investments or whatever it is that
provides the most value to you reducing my housing expense has been one of the
most impactful many decisions that I have made because that can cost you so
much money and it’s actually recommended to spend 30 percent of your income on
housing but can you imagine if you’re only spending 20% of your income even 10
percent or zero what you can do with all of that money instead of putting it
toward your housing you can put it towards something like travel if that’s
something that you’re into or starting your own business you can have startup
funds for that and another options would be buying a duplex for example or even a
triplex living in one unit and renting out the other unit or even doing an air
B&B you could rent out maybe the basement of
a house that you’re living in there’s just different options so I just wanted
to share this information with you guys to kind of help you see you know
different ways that you could reduce your housing expense the more you can
reduce your housing expense the more money you’re going to be able to put
towards something else and while yes it’s important to reduce the little
expenses focusing on the really large expenses is going to be the most
impactful and I’ve talked about this in another video recently so I’ll leave a
link below and you can check out that video too but just think about what’s
really important to you and you know if paying off debt is really important to
you then seriously consider a house hacking because you’ll be able to pay
off that debt so much faster and this is a short-term thing you don’t always have
to have roommates if you don’t want to or always rent out a basement or do air
B&B this can be a short-term thing until you reach certain financial goals and
then you could live by yourself if you want to
but just you know start to think what’s really important to you and where do you
want to put your focus where do you want to have most of your money going right
now that will be most impactful and help you become financially free or even just
become more stable with your finances so if you found this video helpful please
hit the like button and don’t forget to hit the subscribe button to subscribe to
my youtube channel so we can get this content out to more people and don’t
forget to little bail to get notified on when I post new videos and if you guys
are interested in getting two free stocks
wiebel is doing a promotion right now if you open a free brokerage account with
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much for watching and I’ll see you guys in the next video you

8 Comments

Tiffany Thomas, your wealth mentor

Mar 3, 2020, 6:01 pm Reply

Thanks for watching! Please show some love in the comments to help get this content out to more people! 😘

Shviko

Mar 3, 2020, 6:08 pm Reply

nice video bro

Bertha Lackey

Mar 3, 2020, 6:18 pm Reply

Thanks Tiffany!!

Passive Income Tom

Mar 3, 2020, 6:25 pm Reply

Very nice way to get into real estate! 👍

Cova

Mar 3, 2020, 7:10 pm Reply

Great timing!
I was just thinking about this yesterday.

Tiffany did you do the basement work yourself or did you hire contractors?

And how did you find and manage the contractors or how did you know how to do the work yourself?

What was that like🤔

Yenifer So

Mar 3, 2020, 8:24 pm Reply

Hi can you make a video about how did you buy your first house from your roommate, I'm in a similar situation, but I don't know how to get started

Mondragon Reports

Mar 3, 2020, 11:22 pm Reply

I really need to go ahead and do this. I’m currently living by myself in an apartment. I have access to the VA loan and do not have to make a down payment for a property so that makes buying a house a lot easier. In a month I will be doing school full time while working full time. I feel like I will be overwhelmed if I add a house to the mix.

Stephanie T

Mar 3, 2020, 2:43 am Reply

So awesome Tiffany!

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