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#9 How Sarah and Mike Combined House Hacking and BRRRR Investing for Real Estate Success


Are you interested in real estate investing but not sure where to start? For Example, Let’s take a look at Sarah and Mike, two friends who creatively combined house hacking and the BRRRR strategy to purchase a duplex and set themselves on the path to financial freedom.

Sarah, a graphic designer, and Mike, a software developer, both had a strong desire to build wealth through real estate. After researching their local market, they found a duplex in a desirable neighborhood priced at $300,000. The property needed some updates but had great potential. They pooled their savings and secured a mortgage together, leveraging the low-interest rates available to make their purchase.

Once they acquired the duplex, it was time for the fun part: rehab. Sarah and Mike rolled up their sleeves and tackled several improvements, focusing on cosmetic updates like fresh paint, new flooring, and updated fixtures. They also modernized the kitchens and bathrooms to make the units more appealing to potential renters. Their estimated rehab cost was around $40,000, funded through a combination of savings and a renovation loan.

With the renovations complete, they were ready to rent out one unit while living in the other. They set the rent for the vacant unit at $1,800 per month. Since their monthly mortgage payment was about $1,600, the rental income allowed them to cover their mortgage entirely, meaning they could live for free in their own unit!

After six months, the duo saw their hard work pay off. The value of the property had increased to $400,000 due to the renovations. They decided to refinance the mortgage, allowing them to pull out some equity and access $75,000 in cash. This newfound cash could be used to fund their next investment.

Excited by their success, Sarah and Mike began looking for another duplex or multifamily property to invest in. With the cash they pulled out from the refinance, they had enough for a down payment on a new property, allowing them to repeat the BRRRR strategy and continue growing their portfolio.

Sarah and Mike's journey illustrates how combining house hacking with the BRRRR strategy can lead to remarkable results. Not only are they living for free, but they’re also paving the way for financial freedom through real estate.

Are you ready to explore the possibilities of house hacking and the BRRRR strategy for yourself? If you’re eager to learn more about real estate investing and want tips on starting your journey, subscribe to Property Profits today! Let’s unlock the secrets to building wealth through real estate together. Happy investing!

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Location: Queensbury, NY, USA

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