STOP Paying Rent: Live For Free

[FeaRxUnLeAsHeD]

i'm a little confused by the original post. If you have a 3 unit generating $1000/unit = $3000 x (.5) = $1500 net profit, where's the part where you get "free living with no mortgage" if you've rented out all 3 units? Where do you live?

 

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[G_Alexander]

i'm a little confused by the original post. If you have a 3 unit generating $1000/unit = $3000 x (.5) = $1500 net profit, where's the part where you get "free living with no mortgage" if you've rented out all 3 units? Where do you live?

The example in the first post used simple numbers to illustrate basic valuation.

If I were more specific (like using current actuals from my first 3-flat deal) the numbers would be:
$1,000 - Garden Unit rent
$550 - My Unit (market is $1,000 but I only receive $550 because I have a roommate and live in the other half of this unit)
$1,350 - Upstairs unit w/parking
$100 - Other parking space
$40 - Monthly Laundry income
$3,040 Total Monthly Gross

Manager = -$117 a month
Mortgage/taxes/insurance/interest = -$1,570 (although MIP for FHA is about to get slashed big time, which is great news)
Misc expenses = $-50 a month

Cash flow = $1,303

So here, it is much better than just free. It's possible to do better (like in my case) than the numbers I posted in the first example (which was just illustrative to help people understand), and it's possible to do worse. This method works 10x better for you than handing your rent money away to someone else each month though.

 

[RHL]

Everyone paying rent in the USA or other places where this math/system is legal, should have acted on this by now. This post was made last April. Nobody on FLF should be paying rent anymore. People keep asking where all the actionable content is, but then stuff is laid out, literally every single step is here shown to you and justified, and nothing is done.

 

[GuestUser156]

When the real estate market crashes (or drops) and you're leveraged the f*** out, what do you do then?

 

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[G_Alexander]

When the real estate market crashes (or drops) and you're leveraged the f*** out, what do you do then?

Why would you care what happens to your equity value (if/when the market crashes again) if you have substantial cash to cover your debt service? (rhetorical question). Property values fluctuate... cash flow analysis should not (unless you refinance your original deal for some reason).

I don't care what happens to the value of my property (although it has increased $150k). If the equity markets crash, rents won't magically get cut in half in tandem, in fact they will likely go up and I'll smile all the way to the bank.

If you want extra security...buy properties that will have a PF debt-service coverage ratio 1.5x instead of bank standard 1.2x to mitigate your downside risk.

 

[Luffy]

Hahaha, this is a slowlane way of coping, I'm driving the fastlane bruh.

 

[FeaRxUnLeAsHeD]

The example in the first post used simple numbers to illustrate basic valuation.

If I were more specific (like using current actuals from my first 3-flat deal) the numbers would be:
$1,000 - Garden Unit rent
$550 - My Unit (market is $1,000 but I only receive $550 because I have a roommate and live in the other half of this unit)
$1,350 - Upstairs unit w/parking
$100 - Other parking space
$40 - Monthly Laundry income
$3,040 Total Monthly Gross

Manager = -$125 a month
Mortgage/taxes/insurance/interest = -$1,570 (although MIP for FHA is about to get slashed big time, which is great news)
Misc expenses = $-50 a month

Cash flow = $1,295

So here, it is much better than just free. It's possible to do better (like in my case) than the numbers I posted in the first example (which was just illustrative to help people understand), and it's possible to do worse. This method works 10x better for you than handing your rent money away to someone else each month though.

Thanks, you're the man.

Now I just need income and a way to get approved. Guess I need a few years to get a business going with positive income to get approved for a mortgage. This is such a baller idea and it's sad that most people will go on to pay rent or be enslaved to a mortgage for eternity.

 

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[DeletedUser394]

Hahaha, this is a slowlane way of coping, I'm driving the fastlane bruh.

You're an idiot.

What big things have you done then? Oh that's right, nothing. A week ago you were crying about your parents forcing you to go to college, and you make money by working part time at some shit job.

Do you own property of any kind?

@G_Alexander is providing real value, presented into actionable steps that anyone could take. HE"S LIVING IT. The hell are you doing? Nothing. Who the hell are you? Nobody.

He didn't have to share his process with us.

Keep 'driving the fastlane bruh'. Joining a forum does not mean you're in the fastlane. Living in your parents basement does not mean you're in the fastlane. Working a part time job as your sole source of income is not the fastlane. Posting endless quasi-advice in other threads has nothing to do with the fastlane.

Keep stroking it buddy, because you aren't getting anywhere fast, especially if you think what he accomplished is the mark of a slowlaner.

 

[FeaRxUnLeAsHeD]

You're an idiot.

What big things have you done then? Oh that's right, nothing. A week ago you were crying about your parents forcing you to go to college, and you make money by working part time at some shit job.

Do you own property of any kind?

@G_Alexander is providing real value, presented into actionable steps that anyone could take. HE"S LIVING IT. The hell are you doing? Nothing. Who the hell are you? Nobody.

He didn't have to share his process with us.

Keep 'driving the fastlane bruh'. Joining a forum does not mean you're in the fastlane. Living in your parents basement does not mean you're in the fastlane. Working a part time job as your sole source of income is not the fastlane. Posting endless quasi-advice in other threads has nothing to do with the fastlane.

Keep stroking it buddy, because you aren't getting anywhere fast, especially if you think what he accomplished is the mark of a slowlaner.

Don't waste your energy, let the slowlaners do their thing. Wasted energy with calling him out, if he's living in his parents basement part time and stuck on the sidewalk or in the slowlane, then let him be ignorant and think he's doing it right. He'll learn.

 

[Luffy]

You're an idiot.

What big things have you done then? Oh that's right, nothing. A week ago you were crying about your parents forcing you to go to college, and you make money by working part time at some shit job.

Do you own property of any kind?

@G_Alexander is providing real value, presented into actionable steps that anyone could take. HE"S LIVING IT. The hell are you doing? Nothing. Who the hell are you? Nobody.

He didn't have to share his process with us.

Keep 'driving the fastlane bruh'. Joining a forum does not mean you're in the fastlane. Living in your parents basement does not mean you're in the fastlane. Working a part time job as your sole source of income is not the fastlane. Posting endless quasi-advice in other threads has nothing to do with the fastlane.

Keep stroking it buddy, because you aren't getting anywhere fast, especially if you think what he accomplished is the mark of a slowlaner.

Relax, why're you so uptight? I was only half serious, there is no reason to defend him with your try hard insults.

 

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[DeletedUser394]

It ain't hard to insult when everything is true.

You're on the ignore list now, so keep posting as much nonsense as you deem necessary.

 

[Luffy]

Considering you sell things on ebay and take advice from Mr.Moneymustache, I can see how I hit a soft spot. Ignore me all you want, hahahaha.

 

[jon.a]

It ain't hard to insult when everything is true.

You're on the ignore list now, so keep posting as much nonsense as you deem necessary.

That's two of us. My first.

 

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[GuestUser113]

You're on the ignore list now, so keep posting as much nonsense as you deem necessary.

Same.

 

[DeletedUser394]

and just to be clear, lest anyone get the wrong idea, I didn't attack him because he's 'poorer' or not as far along the path as me, I did so because people need to respect those that take the time to go out of their way to provide valuable free information.

Are you going to criticize someone that's done a lot more than you have? Fine, but someone is going to call you out for it. It's easy to say 'hahaha, slowlane bro', it's hard to actually follow through on the actions and make something of your existence.

This is one of the reason we've lost some good people here.

If you can't take it, don't dish it out. Don't dish it out period when someone shares something of so much value.

I'm not about to criticize OP when I know nothing about real estate. I respect him by virtue of his experiences, which differ from mine.

Calling people out when you have no skin in the game to begin with is a joke.

And then acting superior and dismissing people that provide genuine advice when you ask a question shows your intentions from the start.

Anyway, back to topic.

@G_Alexander , any new deals in the pipeline?

 

[GlobalWealth]

@G_Alexander....great thread and great action steps. I missed this one before but I love reading this stuff. Well done sir.

 

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[Guest3722A]

Considering you sell things on ebay and take advice from Mr.Moneymustache, I can see how I hit a soft spot. Ignore me all you want, hahahaha.

Ignore list as well at the new kid on the block. I'll check back in 6 months to see if you've grown.

 

[biophase]

When the real estate market crashes (or drops) and you're leveraged the f*** out, what do you do then?

If you have cashflow and your rents are stable, you can wait this out. It's the people making $200/mo cashflow on $1200 rent that will suffer when maintenance happens and shit breaks AND the market is down.

 

[biophase]

Hahaha, this is a slowlane way of coping, I'm driving the fastlane bruh.

Good luck with that.

 

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[biophase]

The example in the first post used simple numbers to illustrate basic valuation.

If I were more specific (like using current actuals from my first 3-flat deal) the numbers would be:
$1,000 - Garden Unit rent
$550 - My Unit (market is $1,000 but I only receive $550 because I have a roommate and live in the other half of this unit)
$1,350 - Upstairs unit w/parking
$100 - Other parking space
$40 - Monthly Laundry income
$3,040 Total Monthly Gross

Manager = -$117 a month
Mortgage/taxes/insurance/interest = -$1,570 (although MIP for FHA is about to get slashed big time, which is great news)
Misc expenses = $-50 a month

Cash flow = $1,303

So here, it is much better than just free. It's possible to do better (like in my case) than the numbers I posted in the first example (which was just illustrative to help people understand), and it's possible to do worse. This method works 10x better for you than handing your rent money away to someone else each month though.

Another way you can think of this, or the way I do it is. You get 3 different properties and they all cashflow $2000/mo combined. Then you go rent another property for $2000/mo and you live for free! Or you rent a place for $800/mo and pocket the $1200/mo income.

The main premise is to plan for your future.

I have a friend looking for a house now. He wants a nice $200k house. I'm telling him to get a $120k house that can rent for $900 a month. Two years later, he can rent that house out and get his $200k house then. So in 2 years, he will have 2 homes vs. 1 home. Repeat for 10 years and he will be sitting pretty. Add this to your fastlane business and you should be retired in 10 years.

 

[Mark Anthony Le]

Another way you can think of this, or the way I do it is. You get 3 different properties and they all cashflow $2000/mo combined. Then you go rent another property for $2000/mo and you live for free! Or you rent a place for $800/mo and pocket the $1200/mo income.

The main premise is to plan for your future.

I have a friend looking for a house now. He wants a nice $200k house. I'm telling him to get a $120k house that can rent for $900 a month. Two years later, he can rent that house out and get his $200k house then. So in 2 years, he will have 2 homes vs. 1 home. Repeat for 10 years and he will be sitting pretty. Add this to your fastlane business and you should be retired in 10 years.

More Gold within a Gold Thread.....

 

[Go4Greatness]

great thread and please continue bringing value to it. you have people on here that really appreciate your efforts!

I've been looking at going with an FHA over in the Washington DC area for a while now and I cant seem to find the right location for the right price. I currently pay rent for a small 1 bedroom that I'm sure is equivalent to a mortgage payment somewhere close to me. Hopefully my hunting will pay off soon and I'll be able to find the right place. If not I'm probably going to have to move but I love the city of DC.

 

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[ilrein]

@G_Alexander thanks for the awesome post!

I'm making some stable cash from my J.O.B.

I think it's time to start saving $10k and pulling the trigger in 6 months or so.

So, the only things I'll have to worry about, is getting some tenants, and keeping my job just in case? As long as I'm renting for more than my monthly mortgage cost, I'm in the clear? Did you do a process of preselling the place, prior to purchasing it?

Looks like an FHA loan for 3.5% down, with reduced taxes for living there, is very doable.

 

[GlobalWealth]

Add this to your fastlane business and you should be retired in 10 years.

As much as I appreciate the fastlane concept, there is nothing wrong with strategies like this to increase your cashflow. If you can buy properties to give you the ability to live rent free, I don't see that as a wasted effort.

I've noticed a couple of posts here stating that this is not fastlane and a waste of time. but who here doesn't live indoors? who here couldn't benefit from additional monthly cashflow? who here couldn't benefit from having additional assets?

 

[MJ DeMarco]

Hahaha, this is a slowlane way of coping, I'm driving the fastlane bruh.

I started this place 7+ years ago... and let me just say, this is gotta be the one of the biggest butthole comments someone has ever made around here. And even more sad, it's directed at someone who has accomplished more in his twenties than most people do their entire lives. SMH.

I've noticed a couple of posts here stating that this is not fastlane and a waste of time.

Obviously from the incredibly misguided -- we get a lot of those around here -- ya know, the types who think they can learn code in 4 weeks, and 4 months later they got the next hot social media property valued at $1 billion. Fastlane Bruh!

 

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[csalvato]

Wife and I looked into this. It's totally legit. Even without a foreclosure, you can be cash flow neutral pretty easily. If you have the time to hang out and wait for a good deal on a foreclosure, you will be cash flow positive easily.

This works a LOT better if you're willing to live in the smaller unit.

 

[FionaS]

The Army will be moving us in about 7, 8 months, and this is basically what we're planning on doing. We're buying our first house at our next duty station, a duplex if we can find one, a 3/4 bedroom house if not. If a duplex, we'll rent out the other half. If a house, we'll end up moving about a year after we move and we'll start renting that place out. Since we're a full family we need a little more room (can't just take a room and rent out the rest), but we'll be able to slowly move up and start 'gathering' property. It won't be a fast process (unless we drastically increase income) but if we do it right it will be a nice little passive income source over the years.

 

[tycoon7]

G_Alexander,

Does the person without American Citizenship
(I have only Green Card), can qualify for FHA mortgage and for owner-occupant Freddie Mac (HomeSteps), Fannie Mae (HomePath) properties?

My Credit Score is good though.

Thanks for great thread.

 

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[G_Alexander]

@G_Alexander , any new deals in the pipeline?

@GrumpyCat I will update you soon

---
Thanks for the kind words @MJ DeMarco
---

Does the person without American Citizenship
(I have only Green Card), can qualify for FHA mortgage and for owner-occupant Freddie Mac (HomeSteps), Fannie Mae (HomePath) properties?

Not sure on this. But Let me google that for you.

Appears to be a higher down payment requirement according to this. I would refer to Step 1; call a mortgage broker and ask (psst. it's free).

 

[biophase]

As much as I appreciate the fastlane concept, there is nothing wrong with strategies like this to increase your cashflow. If you can buy properties to give you the ability to live rent free, I don't see that as a wasted effort.

I've noticed a couple of posts here stating that this is not fastlane and a waste of time. but who here doesn't live indoors? who here couldn't benefit from additional monthly cashflow? who here couldn't benefit from having additional assets?

Most people here don't realize that fastlaners will all have the problem one day of what to do with all that money. And one of the solutions is to buy real estate. At that point, they will come back to these real estate threads.