bjbj t Pay Rent or a Mortgage Ever Hello.
Welcome to Todd Miller TV. There s a strategy to be able to buy a place and live in it for
free and actually make money by living in a place and a lot of people don t do it. I
m not really sure why. It s a very interesting strategy. It s totally doable for most people.
If you have a decent credit score, you can do this. It works every time and this is how
it works. There s a loan program out there called FHA. It s one of the largest ones.
It s government-insured and it allows you to borrow money to live in a fourplex. So
a fourplex or really any multiunit dwelling, we re going to call it a fourplex because
the numbers just work really easily. OK. So here s the scenario. You go out there and
you find a fourplex in an area acceptable that you would want to live in and you go
put an offer on it and then you put FHA financing in place. Now FHA financing, the requirement
is you have to live there. So you have to reside in one of the four units. OK? So you
re in one of the units but you can put tenants in the other units. Now where this becomes
really easy is if you find a fourplex where there s one unit open and there s three units
occupied with tenants paying rent already and I will talk about that in a second. So
here are the rough numbers. We will just say for the market, we will just say it s the
Las Vegas real estate market right now. Two hundred thousand dollars is the purchase price.
You re buying the whole building for 200 grand and your monthly payment is roughly $1400.
That s what you pay every month to the bank. But for each unit, we will say you re getting
$700 per month in rent. So what that means is you re getting 700, 1400, 2100 a month
in rent. You re collecting that from your tenants. You re only paying 14 so you re living
in this unit, not paying anything essentially; and you re getting $700 a month rent. The
great thing about this is in months where you don t have a tenant, you re still not
out of pocket because the two tenants cover the whole amount which is ultimately the way
you would like to have it. You like to have two tenants pay the whole thing. This one
pays profit. You pay for free. That interesting thing that I was telling you about with this
is that let s say you don t make a lot of money and you don t have a really high income
and maybe you can t qualify for this payment. You re able to take the rent coming in from
them and add that to your income. You get a partial credit for the rent. So if you say,
Hey look, the fourplex already has three tenants. Here are the leases. They re long term leases.
They re all staying, they will add this $2100 to your income and you will have a higher
income. You will be able to qualify for more. So if you re watching this video and you re
say in California, you re like, But we can t get anything for 200,000 California, and
that s probably the case. But the FHA limit in California is much higher. It could be
700,000 some areas, so you just have to take these numbers and ramp them all up. So you
re going to pay more in mortgage payment but you re probably in parts of California collecting
$1200 or $1500 a month rent per unit. So run these numbers. Figure out if it makes sense
and then go find a real estate agent who could find you one of these deals. It s actually
pretty uncommon for people to do this. What typically happens is that investors are buying
these, just renting out all four units and getting a really good return on their investment.
You can do it but you have to live in the unit and you can t play games. This is FHA.
You can t say you re going to live there and not live there. You have to live there. Now
at some point a couple of years down the road if you have to move out, because you want
to move into a single family home, you have to talk to your lender about what your requirements
are for doing that. But this is a legitimate strategy. Just people aren t taking advantage
of it but it s an interesting way to basically live in a house for free and not pay any rent
and collect money to live there. So I thought I would share that with you. That s my update
for today and hope to see you on another video. Thanks. PAGE * MERGEFORMAT :pip [Content_Types].xml
Iw}, $yi} _rels/.rels theme/theme/themeManager.xml sQ}# theme/theme/theme1.xml w toc’v )I`n 3Vq%’#q
:TZaG L+M2 eO* $*c? )6-r IqbJ#x ,AGm T[XF64 E)`# R>QD=(K&=al- 4vfa 0%M0 theme/theme/_rels/themeManager.xml.rels
6?$Q K(M&$R(.1 [Content_Types].xmlPK _rels/.relsPK theme/theme/themeManager.xmlPK theme/theme/theme1.xmlPK
97-2003 Document MSWordDoc Word.Document.8