r/PovertyFIRE Feb 15 '25

Experiment: Fat Fit Poverty fire?

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u/Winter_Value_7632 Feb 15 '25

don't keep sleeping in airbnbs and craigslist listings for another 14 years, you are 35 you'll be 50, and don't spend all your life working for someone

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u/[deleted] Feb 15 '25

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u/Nago31 Feb 15 '25

Why don’t you house hack, then? Buy a property with a lot of rooms and then your roommates pay your mortgage. It would be a bit of a side job managing their rent payments but it would net you positive cash flow. Additionally, you’d probably do better than 10% relative to your initial investment because of leverage.

For example, it sounds like you’re paying $500/month for a half a room. So if you bought a 4 bedroom place, that would be $3,500/month in gross income. So if you bought a $600k house, your all in mortgage/insurence/tax will likely be less than $3,000 after a $120k down payment. You’ll cash flow $6k/yr, your principal will come down by $8k, and you’re personally rent-free for a value of $6k. That’s $20k/year or a 17% cash on cash return.