Building Equity and Cash Flow Through House Hacking

2020-09-01

How do you take an existing asset and find alternative ways to profit from it? Or, how do you buy more house than you can afford and live rent-free by building equity and cash flow? House hacking. Today, Clint Coons of Anderson Business Advisors talks to Captain Kevin Brenner, co-host of the Active Duty Passive Income (ADPI) Podcast and head coach of Operation A.T.O.M. (Action Takers Only Mastermind). Kevin teaches military real estate investors how to build passive income through smart investments. Kevin started his real estate investing journey in late 2018, ...

How do you take an existing asset and find alternative ways to profit from it? Or, how do you buy more house than you can afford and live rent-free by building equity and cash flow? House hacking.

Today, Clint Coons of Anderson Business Advisors talks to Captain Kevin Brenner, co-host of the Active Duty Passive Income (ADPI) Podcast and head coach of Operation A.T.O.M. (Action Takers Only Mastermind). Kevin teaches military real estate investors how to build passive income through smart investments.

Kevin started his real estate investing journey in late 2018, after using his Veteran Affairs (VA) Loan Entitlement to house hack a quadplex in Savannah, Georgia. Through careful quality improvements, Kevin renovated each unit and raised the rents $500 per month/per unit. In July 2019, Kevin joined the ranks of the ADPI team and is dedicated to helping other service members and veterans.

Highlights/Topics:

What is house hacking? Easier way to reduce, eliminate, or cash flow mortgage
How to take advantage of house hacking? Seek properties where you can rent out bedrooms, separate spaces, and more areas
What is a carriage house? Separate space or apartment that’s part of a single-family property that you can rent out to pay your mortgage while living in the main house
What is the ideal property for house hacking? Depends on number of units, not number of bedrooms; look for the right property and strategy
How can a house hacker level up? Start with roommates, then live a life of luxury in the comfort of your own home paid by others
Where are the best places to house hack properties? Depends on market and occupancy regulations, but college towns and tourist destinations tend to be popular
Do you have to house hack with people? No, there are other options to create cash flow, such as renting out your garage for storage space
What type of insurance coverage is needed? Contact insurance provider about short-term rental and supplemental policies
When, where, and how to research rental agreements? Ask for advice and reach and to other investors and attorneys to find out their processes and precedence
What are some differences between conventional residential, VA, FHA, and other loans? Down payment percentage, occupancy regulations, and mortgage insurance
What are potential house hacking pitfalls to avoid? Work and responsibility are still involved, so consider managing your own property if you’re wise in real estate