367: Finance Friday: Tips to Build a House Hack STACK in Your 20s

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.5 • 3K Ratings

🗓️ 30 December 2022

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

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Summary

Couch flipping may be the best side hustle you’ve never heard of. It’s so lucrative that today’s guest Parker used couch flipping to save up his down payment for his first house hack! Of course, who could have assumed otherwise from someone like Parker? He’s a financial analyst who made an intelligent move from expensive Boston to sunny Tampato house hack for the first time with one of his best friends. He’s making some impressive moves at a young age, but he still has questions about what to do next. Although Parker is thankful for buying the house hack, he doesn’t know what he should do after he moves out. Does he sell the property, keep it as a rental, transfer it into an LLC, or go back to renting as he saves up enough money for the next house hack? He also has some very pressing capital expenditures on his mind, like a new roof, HVAC, and other large system replacements that could cost him and his house-hacking partner tens of thousands out of pocket. These replacements won’t be cheap, but they could help improve the property before he potentially sells. And like most FIRE-minded twenty-something-year-olds, Parker needs to know where the highest ROI for him is. Does he continue to save up to buy another house hack, or should he be contributing to his tax-advantaged Roth, HSA, and 401(k) accounts? Plus, with such an unbelievably lucrative side hustle like couch flipping, how much time should he put into building this income-replacing revenue stream? Parker is on a great path, but with guidance from Mindy and Scott, he could reach financial independence even faster! In This Episode We Cover House hacking explained and the benefits of building a house hack stack early on When to transfer an investment property into an LLC (and whether it’s even worth it) How to calculate cash flow on an investment property to ensure you’re turning a profit The “shotgun” clause every investor should sign when partnering on a deal Couch flipping and how this side hustle can make you thousands every month Capital expenditures and how to estimate your costs for big future repairs And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Mindy's Twitter Scott's Instagram Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Subscribe to The “On The Market” YouTube Channel Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets Check Out Mindy’s 2022 Live Spending Tracker and Budget Click here to check the full show notes: https://www.biggerpockets.com/blog/money-367 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Bigger Pockets Money Podcast, Finance Friday edition, where we interview Parker and talk about house hacking and couch flipping.
0:07.7	A little bit of both, it really depends.
0:11.4	Yeah, that's why I bought the truck I owned.
0:14.6	Because when I moved here, I bought the truck for $3,500.
0:18.2	Put some money to it. It's probably worth 5 grand now.
0:21.6	So, you know, when we were renting a house, we were just buying a couch.
0:24.2	They did maybe clean it up, pre-listed, offered delivery on the couch.
0:30.0	I think between September 2021 and May 2022, we made $36,000.
0:38.3	Hello, hello, hello, my name is Mindy Jensen.
0:40.4	And with me as always, is my can definitely bench press at least 10 pounds more than me co-host Scott Trent.
0:47.3	Maybe, but no one can lift our listener's spirits like Mindy Jensen.
0:51.8	Aww, Scott, that's so sweet. You're gonna make me cry.
0:55.9	Scott and I are here to make financial independence less scary, less just for somebody else,
1:01.2	to introduce you to every money story because we truly believe financial freedom is attainable for
1:06.0	everyone, no matter when or where you're starting.
1:08.5	That's right, whether you want to retire early and travel the world, take a break for a year
1:12.7	and travel the world. Go on to make big-time investments and assets like real estate or start
1:16.6	your own business. We'll help you reach your financial goals and get money out of the way,
1:19.6	so you can launch yourself towards those dreams. Scott, I'm excited to talk to Parker today because
1:24.0	he has a kind of fun set of circumstances and also a really amazing side hustle that we don't
1:29.8	get into until the very last minute where you will find me a little bit shocked at how much he can make.
1:35.2	Yeah, Parker's crushing it has a lot of good options and you know, just needs to kind of focus
	...

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