STOP Paying Rent: Live For Free

[IceCreamKid]

Damn. Can I just say I love this thread. Living for free is a sweet deal.

 

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[GlobalWealth]

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.

Look at the Forbes 400 list. How many of them don't have real estate as a significant asset in their portfolios?

 

[Luffy]

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.



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!

Man people can't take a joke, I wasn't even serious when I made that post, it was sarcasm.

 

[Shdreams]

I'm loving this thread. I'm taking notes rite now. My wife and I own a home now, With a lot of help from Her father. But I payed rent for 12 years and I always was very Interested in being a property owner/ Landlord. Man I hated some of my landlords. Now a days I realize it was just property management. most likely not the owner I hated. Anyways this resonates with me very well. I see Value that I can bring to the table here. I would love to bounce a couple questions off you in the future.

This is not a revolutionary topic, and I am not a revolutionary human. Living rent free has been done by many. Living rent free with cash flow has also been done by many (including me).

 

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[MJ DeMarco]

Man people can't take a joke, I wasn't even serious when I made that post, it was sarcasm.

Then you need to do a better job at communicating that... an emoticon always helps.

 

[Luffy]

Then you need to do a better job at communicating that... an emoticon always helps.

Sorry then I'll do that next time. I don't want one of my role models to think I'm an a**hole.

 

[G_Alexander]

Sorry then I'll do that next time. I don't want one of my role models to think I'm an a**hole.

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.

Man people can't take a joke, I wasn't even serious when I made that post, it was sarcasm.

Don't think much of what you've said here could EVER be considered as "joking" no matter how many emoticons you throw after your posts. MJ was really being nice to you by chalking it up to miscommunication and letting it slide; but I'm not as nice to mean people. Smiling while you degrade someone doesn't make it any better. You calling out/making fun of another valuable user because he is "selling things on eBay" really shows the kind of class you have (none.). What are you doing to bring value to this place? Where is your cash cow?

We will get this back on topic, but you are going to have to learn to be more positive to everyone around here (not just kissing a$$ to higher status members because "they are so awesome, bruh"). Most of us love MJ for the person he is, not the things he has (they are just an awesome bi-product of his creativity and winning personality).

Try not to get defensive about this post. Just take it in, be nicer to everyone and start putting out the positivity. It comes back to you, I can promise you that.

 

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[csalvato]

To get this thread back on track, here are some additional things I found out when I was researching this:

1. This sounds easier than it is. It is easy, but it's not effortless. It takes time and will take time away from any other business pursuits you have. Working a 9-5 and trying to make the transition and put some savings to good use? This is great for you. Have a positive cash flow business and want to protect assets or put your money to good use? This is great for you. At cash-flow even or cash-flow negative and trying to turn that around without getting a job? You might want to consider another avenue to put more of your time. I fit into the latter category, which is why I didn't pursue it.
2. If you are using a real estate agent, many times they will know (or be able to find out) if all of the units are rented and how much each tenant is paying. This lets you predict cash flow from Day 0.
3. If you are waiting on or found a foreclosure, you won't really know how much you can get for rent. You will have to estimate it. A good way I found to do this was to put the zip code into Zillow and search for rentals. Look up another rental property and scroll down to the chart. Many times there will be rent/square foot in a graph for the ZIP code. Multiply this number by square footage and you can get a good estimate on the rent you can get for each unit. You can slam Zillow all you want for being "inaccurate" but I found that most of the properties I seriously considered renting in NJ were right in line with these calculations from Zillow.
   
   
   
   
4. If you are willing to wait, in addition to checking foreclosures put your name on a list with local Divorce and Estate lawyers. Many times, people getting a divorce will be happy to sell a property at a very low price if they can get a buyer FAST so that they can settle the divorce. On the same side of that coin, people who just had a parent or loved one die don't have any value associated with a property, and will be happy to let it go at below-market prices to get a fast infusion of cashflow...especially if the person who died didn't leave much to pay for funeral expenses or to cover debts. You MUST be ready to buy at the drop of a hat though...and you won't know when it's coming
5. As I said earlier, it will be hard to be cash flow positive if you go for a listed property (not a foreclosure, not a divorce property, not an estate property, etc.) and intend on living in the biggest unit. Where I was looking, the biggest unit would command somewhere around 60-70% of the monthly mortgage payment. So if you can go for the smaller unit, you will achieve freedom from housing bills quickly.

 

[Luffy]

Don't think much of what you've said here could EVER be considered as "joking" no matter how many emoticons you throw after your posts. MJ was really being nice to you by chalking it up to miscommunication and letting it slide; but I'm not as nice to mean people. Smiling while you degrade someone doesn't make it any better. You calling out/making fun of another valuable user because he is "selling things on eBay" really shows the kind of class you have (none.). What are you doing to bring value to this place? Where is your cash cow?

We will get this back on topic, but you are going to have to learn to be more positive to everyone around here (not just kissing a$$ to higher status members because "they are so awesome, bruh"). Most of us love MJ for the person he is, not the things he has (they are just an awesome bi-product of his creativity and winning personality).

Try not to get defensive about this post. Just take it in, be nicer to everyone and start putting out the positivity. It comes back to you, I can promise you that.

It was a joke before he made a big deal of it and tried to insult me so I spoke the truth. It was a joke but after his attitude, I didn't even want to tell him that. I don't care who is a higher status member or not, I started reading TMF last summer and recently got a copy of the book sent to me, also he didn't go straight attack mode like most people so yeah.

 

[DeletedUser394]

Ha, interesting I can see this last post for some reason, but not the others.

I didn't try and insult you, I did insult you (truth hurts?), which is why you tried to insult me back and became super defensive. Psychology 101.

I think in my whole life, I've sold 5 items on ebay, so I have no idea what you are talking about. And regardless, what's wrong with making money on ebay? Rather have that than a job.

There are many people on here that make $100k-$1M+/yr strictly importing and selling on ebay.

Here's a good thread: https://www.thefastlaneforum.com/co...porting-wholesaling-for-resale-on-ebay.51843/

Let it go man. You aren't speaking any truth, only delusions.

Fact is, I've essentially retired at 22, and you still live with your parents. So if you want to stick to the facts and the truth, there you have them.

I'll give you one compliment, and that is that your grasp of English is flawless, so your original post that started all of this nonsense clearly wasn't a joke. You even tried to backtrack and distance yourself from it, but the internet is written in ink unfortunately.

Instead of grovelling to MJ, why don't you actually apologize to the OP?

You were extremely hostile and arrogant in that other thread you started when you were asking for advice about how you should proceed with your future (college/no college, etc). Your response to many of the people was 'I don't care what you think.' Well, so why then did you ask the question? Anytime someone else chimed in with their insight, your response was 'I've already made my decision'. This is why I got on your case in this thread. You didn't even care to share with anyone what your final decision actually was. Gee, thanks!

And if you 'don't care', why do you keep responding and defending yourself? You might be asking me the same question. Well, because this forum is a community, largely based upon respect. We understand that we have many different paths to reach our goals, and we support each other. I've personally met with many of the people here, we've shared great experiences, and they are great friends.

I apologize for calling you an idiot, that was unwarranted. However I stand by everything else that was written.

@G_Alexander, you the man.

 

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[Luffy]

Ha, interesting I can see this last post for some reason, but not the others.

I didn't try and insult you, I did insult you (truth hurts?), which is why you tried to insult me back and became super defensive. Psychology 101.

I think in my whole life, I've sold 5 items on ebay, so I have no idea what you are talking about. And regardless, what's wrong with making money on ebay? Rather have that than a job.

There are many people on here that make $100k-$1M+/yr strictly importing and selling on ebay.

Here's a good thread: https://www.thefastlaneforum.com/co...porting-wholesaling-for-resale-on-ebay.51843/

Let it go man. You aren't speaking any truth, only delusions.

Fact is, I've essentially retired at 22, and you still live with your parents. So if you want to stick to the facts and the truth, there you have them.

I'll give you one compliment, and that is that your grasp of English is flawless, so your original post that started all of this nonsense clearly wasn't a joke. You even tried to backtrack and distance yourself from it, but the internet is written in ink unfortunately.

Instead of grovelling to MJ, why don't you actually apologize to the OP?

You were extremely hostile and arrogant in that other thread you started when you were asking for advice about how you should proceed with your future (college/no college, etc). Your response to many of the people was 'I don't care what you think.' Well, so why then did you ask the question? Anytime someone else chimed in with their insight, your response was 'I've already made my decision'. This is why I got on your case in this thread. You didn't even care to share with anyone what your final decision actually was. Gee, thanks!

And if you 'don't care', why do you keep responding and defending yourself? You might be asking me the same question. Well, because this forum is a community, largely based upon respect. We understand that we have many different paths to reach our goals, and we support each other. I've personally met with many of the people here, we've shared great experiences, and they are great friends.

I apologize for calling you an idiot, that was unwarranted. However I stand by everything else that was written.

@G_Alexander, you the man.

The fact that you insist that it wasn't sarcasm confirms that you're bitter. Did it hurt you that much? Why would I be serious when I've already laid out my life situation in the other thread? Also I appreciated alot of the advice given in the other thread which helped in my decision making, that's when I respectfully let other people know I've already decided, get over it and learn to take a joke, you don't seem a fun person to hang out with.

 

[Shdreams]

Holy FIREWORKS in this thread since yesterday! And it wasn't me this time.
This Income property is a goal written in stone for me now. I want this. I already have a home that's in my wife's name. I'm still a first time buyer in Ontario. I researched it. I wouldn't need to live in the property. I have some hurdles to jump before I can take the Roofs at work by the Job. Feathers will be ruffled and backstabbing is a guarantee in the framing business. I have to slowly manipulate the situation into my favor. And make a smooth transition. But I can turn $1400 bi-weekly to 3 to $4000. And thanks for the great info in here guys.

 

[mars]

I love finding threads like this months after it was created, but hate when it becomes a pissing match. Can't we all just get along!? You fellas have a problem with one another, send a PM...it's selfish to post it here and isn't adding any value to this thread. You just want the attention.

 

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[exclusives88]

How is the area like where you are able to buy a multi family home for these prices? My plan is to move soon (anywhere I am flexible). What states/cities would this method work? It seems like this will only work for lower income neighborhoods?

 

[biophase]

It was a joke before he made a big deal of it and tried to insult me so I spoke the truth. It was a joke but after his attitude, I didn't even want to tell him that. I don't care who is a higher status member or not, I started reading TMF last summer and recently got a copy of the book sent to me, also he didn't go straight attack mode like most people so yeah.

You're a dick. <--- maybe sarcasm???

 

[csalvato]

How is the area like where you are able to buy a multi family home for these prices? My plan is to move soon (anywhere I am flexible). What states/cities would this method work? It seems like this will only work for lower income neighborhoods?

It can work in any neighborhood.

People foreclose in nice neighborhoods all the time.

In fact, I would hazard a guess that nicer neighborhoods have a high amount of foreclosures because people buy a big house that is beyond their means. It's probably not as popular as a while back, but I am sure it still happens.

When it comes to other "motivated sellers", there is no reason the property needs to be in a bad neighborhood.

Rich people with nice homes get divorced and want a quick sale all the time.

Rich people with nice homes die and their kids want a quick sale all the time.

Good deals are everywhere if you are patient and know who to contact. Luckily, many people in this thread have told you who to contact.

(Psst.. that's mortgage brokers, divorce lawyers, estate lawyers, and property managers)

It helps a lot if you know the area you are moving to, though, so that you easily know the good areas from the bad.

 

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[Jamesdoesmith]

I have been reading alot from investors and folks that have lived this. It is house hacking. Essentially what it is called. you can get the FHA loan that low and get the perks of a live in and you only have to "live in" for a year at a time I believe. After that you take yourself out of one of the units and rent it out right at 100% occupancy. Then you can rinse lather repeat till you get to the max of 4 loans. Then take the the first two properties you have and out right sell them (having appreciation helping you out) and pay off your loans on your next two properties making them cash printers. Do this near somewhere where people NEED to live (downtown, colleges, hospitals) and you could have a mega buy hold portfolio churning out dollars monthly. You can get creative with how you finance it. Banks aren't the only folks with money, wet money, hard money, seller finance, rent to own. There are tons of ways to skins this cat. And make a killing in the process.


This post brought to you by the burning and selfish desire to move out of my parents house.

 

[csalvato]

This post brought to you by the burning and selfish desire to move out of my parents house.

LOL you had me rolling...

Then take the the first two properties you have and out right sell them (having appreciation helping you out) and pay off your loans on your next two properties making them cash printers.

You also get tax breaks for "trading up" IIRC

 

[AllenCrawley]

The fact that you insist that it wasn't sarcasm confirms that you're bitter. Did it hurt you that much? Why would I be serious when I've already laid out my life situation in the other thread? Also I appreciated alot of the advice given in the other thread which helped in my decision making, that's when I respectfully let other people know I've already decided, get over it and learn to take a joke, you don't seem a fun person to hang out with.

The derailment of this thread is not going to continue. In hopes to remove the distraction and drama from a great thread, I've temporarily removed your ability to respond in this thread.

 

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[G_Alexander]

How is the area like where you are able to buy a multi family home for these prices? My plan is to move soon (anywhere I am flexible). What states/cities would this method work? It seems like this will only work for lower income neighborhoods?

Refer back to post #1, and follow the hipsters. These are the areas that are just "fringe-y" enough to get you the returns you are looking for.

 

[Twista]

Great thread @G_Alexander! I'm planning on moving out from my parents to another state and this seems like a good way to do it. Thank you for your time for writing this thread!

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.

Someone always have to spoil an awesome thread.

Fastlane Bruh!

OMG, he just went there!

 

[csalvato]

'm planning on moving out from my parents to another state and this seems like a good way to do it.

I dunno anyone else's opinion, but I would highly recommend you move into a temporary rental on a month-to-month basis first while you scope out areas.

One drive-thru in an area will tell you if it's shit or not.

 

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[Jamesdoesmith]

Refer back to post #1, and follow the hipsters. These are the areas that are just "fringe-y" enough to get you the returns you are looking for.

or the students. But yes the hipster revitalize movement is a great way to get a up and coming property.

 

[G_Alexander]

@G_Alexander , any new deals in the pipeline?

@GrumpyCat The update has occurred (in my progress thread) .

Update can be found here!

 

[Envision]

Im 20 and have been implementing the tips from this thread, my local investors group, as well as the bigger pockets forum and I pulled the trigger yesterday on this strategy. Should hear back tomorrow if I got the house. Long term tenants in the side I would rent and I can bump the rents to make a small cash flow.

Will check back in with specs on the property if I got it. Wish me luck!

 

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[Envision]

Got the house, I can now live for free and actually may make a bit of profit. Will do a full write up in this section when I get the time.

Thank you for inspiring the idea amongst others.

 

[Envision]

Not slowlane at all. I turned a 4 plex into 16 units and rolled this into 52 units within 3.5 years. You have to start somewhere and this is a great way. The leverage is an added bonus.

This kid is brilliant. He will go far. He is taking the appropriate steps now in his youth.

Also with pros comment... Real estate may not be tech entrepreneur fastlane but what @SteveO said is exactly right. its all about passive income. I can move out in a year and repeat this process and have 7k cash flow off of one duplex and scale from there. Its a no brainer if you are paying for rent...

 

[Glorydog]

Got the house, I can now live for free and actually may make a bit of profit. Will do a full write up in this section when I get the time.

Thank you for inspiring the idea amongst others.

Congratulations and props for actually taking action!

 

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[LateStarter]

Congrats! Once you close you'll be itching to look for another property. I've got 5 units at the moment and still looking to scale this bigger (and a lot faster). My wife is also trying to convince me that we should sell our house and rent instead. She wants to use the equity to buy more properties and have all the rental units pay for our living expenses. I'm not sold on the idea since we have a bunch of kids (4) but it's an interesting perspective.

 

[Lathan]

"FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance."

That is a direct quote from the fha website. Just wanted to run this by you and ask, does this mean that when I go in an talk to a mortgage broker that I should give the impression that I plan to permanently live on the property? If I mention that I plan to move out eventually will I be denied the loan?

I am ITCHING to do this and don't want to screw it all up!