Purchasing a home can be a bit of a struggle. Finding the right house, getting a loan, fixing your credit and raising capital are all typically the toughest factors while home buying. But this doesn’t have to be the worst part when you have a financial plan in place.
Many people want to buy a home for their family simply because that’s the thing to do. It generally lowers the monthly cost of living. But what if you could dive a little deeper. What if you could purchase a home and it pays for itself.
Yeah, you heard me. You can buy a property and it can pay for itself. How? Well, I thought you’d never ask.
This indeed is a question many wealthy people ask themselves before a major purchase. Most people who invest in real estate invest to make money and lower expenses. Okay, you might be thinking how can someone get into debt to make money.
Simple. When you’re looking for your first property consider being a landlord at the same time. For instance, let’s say you purchase a duplex. You can live in it and rent the other side of it out.
Granted just one rental property won’t bring you millions within a year but until that property is paid off, someone else (tenant) can pay the mortgage for you. Yes, you will still have other bills to take care of but this strategy alone can give you a little more financial freedom.
Let’s say your mortgage is $600 and you rent it out for $800. You gain an extra $200 other towards bills. This is a win because your home is also your business.
As you learn the benefits of becoming a landlord you may just enjoy it. You will easily be able to put yourself into position to then purchase more property or that single family home you were dreaming of. By then moving out of your duplex you could potentially double your passive income. Instead of producing $800, that duplex will then produce $1600 monthly. Needless to say that $1600 can now help you pay for your new purchase and the old one.
These simple principles are what helps people get richer everyday. Making investments like this can literally change your lifestyle. Imagine not having to worry about your mortgage. Granted there are always ups and downs. But how great would it feel to not have to worry about the biggest bill that stresses people out.
Purchasing real estate with the intent to make money opens the door to more freedom, not just financially. By having money coming in each month you eliminate the need to stress all day long. Having enough property could even fire your boss completely.
It all boils down to you and your goals. So before you purchase your single family home think twice. Ask yourself, why do I want this home? How will this purchase change my financial lifestyle? Does this purchase make sense? Will I still have to trade my time for money? Do I want to learn how to trade my money for money?
Just a thought.