There’s just a lot of particulars one would have to consider before this is a solid plan. Maintenance and upkeep could literally cost 20-30k per year on a property like a 4 plex. Sure, one could DIY things but furnaces will break, washers/dryers do as well, floors eventually need to be replaced, plumbing issues…etc. $500 per month of rent sounds good while others pay your mortgage but what if you have tenants that don’t pay or get behind paying? A landlords experience can lean heavily on tenants and the laws in the state you reside in. If one would consider doing this they would need another solid income to fuel this and a solid emergency fund of minimum $40k for just the property.
1 week ago | 20
For someone who doesn’t even own a home this sounds like an incredible amount of risk.
1 week ago | 12
My grandfather had 6 kids on just his professor’s salary. The only way he could make it was by house hacking. It started with one tenant but it worked out so well that by the time he was in his 70s he had 30! He essentially kept adding units around his house and did rent by the room for students. They all came to him when they needed things fixed, but he thought it was very manageable. This was his only investment and against all odds he passed away leaving a meaningful inheritance.
1 week ago | 11
Try renting a room to a senior. They have social security to help pay the rent which has become not enough to rent their own place. They are generally quiet and they often don’t mind helping out around the house. Lots of time you are giving them some company and if you have small children you could end up with an occasional sitter. The world is changing, time to adapt. Win-Win 😊
1 week ago | 3
Or, and here's a thought, take the 200K, put a nice down payment on a house, and never have to deal with tenants. What a novel idea! Better yet, move to a town where 200K pays for the house in cash! In addition, I think you have forgotten about property tax, maintenance, and insurance on a million dollar building.
1 week ago (edited) | 8
The direction of today's economy is looking more and more difficult to work for and attain the 200k for a down payment. Their are many of us that have the skills to prosper from there, but the system is discouraging away from common people from attaining the goal
1 week ago | 1
I wouldn’t want to live that close to my tenants…. They’d come knocking on my door asking why there’s a drip on a faucet.. asking me to change a lightbulb.. saying there’s a smoke detector chirping..
1 week ago | 12
My husband and I house hack. It's been great, and I wish everyone I care about would get on board with it!
1 week ago | 3
That's all well and good until your tenants miss the rent. Then it's on you to make it up. If it gets so far behind, you'll be moving out along with your tenants. Seems like a one way ticket to debt. As a matter of fact, the plan puts you into debt before you even have your first tenant.
1 week ago | 3
It is not worth the stress, renters leave, you have to fix issues, your units stay empty for weeks if not months when someone leaves and you're busy with other priorities. Heaps better to invest in the stock market always, just a few clicks you're a shareholder. No headaches with tenants. When you need the money if it is in the stock market you are a few clicks away to get the deposit in your account, with units you cannot sell quickly a bathroom and use the funds to an emergency. Stay away from this, my recommendation
1 week ago | 4
If you have 200k why buy a duplex or 4 plex buy land and rent it to a business less over all up keep and larger rental returns...
1 week ago | 2
My landlord never wanted to fix anything around the house. When we told him something broke (the house was already in bad shape) he brushed it off. Now that we moved out , he literally needs to fix the whole house because nobody is going to want to live there.
1 week ago | 2
If I had a million dollars, I wouldn't need the rental hassles to buy homes I wanted!! (I love ya, Jaspreet, but some of your solutions require resources few of us will ever have).
1 week ago | 7
How is the 1,000,000 paid? You must have part 2 to this right. 12k year will not do for 83 years with the 4th tenant.
1 week ago | 1
Minority Mindset
Ever want to buy a house, but not have the mortgage?
There is a way to do this - legally.
Yes, you could pay all cash, that is one option.
Another option is called house hacking, and it’s one of the easiest ways to start building wealth — even if you’re just starting out.
Here’s the idea: Most people think “home” means a single-family house.
But the primary residence rule says you can use a normal home loan (lower rates, smaller down payment) to buy a duplex, triplex, or 4-plex.
You live in one unit, and rent out the others.
Let’s break down an example:
- Buy a 4-unit building for $1M
- Put down $200K, monthly mortgage is $5K
- Live in 1 unit, rent the other 3 for $1,500 each = $4,500/month
Now your cost to live there? Just $500/month — AND you’re building ownership in the building.
Here’s the really fun part: Most loans say you have to live there for 1 year + 1 day.
After that, you can move out, rent all the units, and do it again with a new property.
Each year, you could add another building to your list — and your tenants help pay for them.
You don’t need to start with something huge.
Even a small house can become a rental after a year.
The start is the slowest part.
Is this a strategy you think you would try?
Let me know in the comments BELOW!
Also, stay up to date with what is happening with asset classes like real estate by subscribing to Market Briefs for FREE!
Enjoy!
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1 week ago (edited) | [YT] | 295