Househack Multiple Times for True Wealth
Househacking in Austin is awesome!
You save money, get to live where you want, in a house that's appreciating, that your tenants are helping you pay down AND that saves you money on taxes at the end of the year.
Yes, househacking is an incredible way to build wealth, passive income and save money.
You know what's even better?
Househacking a few times!
We'll use an example of the a home price in the Austin area of $400,000, which is a typical entry level single family househack in 2022. For duplex assume $550,000. Let's say you buy one $400,000 househack. In 30 years your total gain in loan paydown, appreciation, cashflow and tax savings will be over $1,000,000. Quick math, $380,000 loan paid off. Low end appreciation of 3% over 30 years (low end), $970,000 value in 30 years. Even a measely $100 a month cashflow adds another $30,000 and that's assuming rent doesn't go up which we know it will. You can also assume tax savings of around $5000 a year minumum which is $150,000. So you can see one househack EASILY will make you over $1 Million dollars in 30 years, a number many try to save for retirement through retirement accounts.
This also leaves out that your househack that is now worth $1 Million while paid off in 30 years earns more than $3000 a month in pure cashflow, on the low end. Meaning you don't even need to sell it to do very well.
Imagine that you do this two, three, four, five times. If you move every year for 5 years you can easily have a portfolio that's worth over $5 Million dollars that also cashflows you over $15,000 a month in 30 years.
Sounds like a decent retirement huh?
The best part is it's extemely easy to do and there is no better place to do this then Austin, Texas!