Would You Live In A Closet For $1.48m?
Published: 2021-10-07
Status:
Available
|
Analyzed
Published: 2021-10-07
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Following a specific strategy (house hacking) can lead to $1.42 million in wealth and an average monthly income of $8,500 for life.
"if you follow these steps you end up with 1.42 million dollars with an average income a month of over 8500 for the rest of your life"
Pending
A cheap rental property bought for $50,000 can be renovated to generate significant returns.
"you're going to have to live in a house like this this house was last renovated in the 1970s sadly my tenant that lived here passed away and we are going to go through and refinish it it was a cheap rental that i bought a few years ago for about 25 thousand dollars per side fifty thousand dollars total"
Pending
House hacking, utilizing government financing to buy a property, convert it into apartments, and live in a small space, can lead to substantial income.
"you go and get government money you buy a house you turn the house into apartments you live in a closet and you make absolutely insane amounts of money this is something called house hacking"
Pending
Living in a small space for five years to earn $90,000 annually and accumulate $1.5 million is presented as a favorable outcome compared to arduous labor.
"i've known a lot of people that have worked in mine shafts and in coal facilities here in southern ohio and they've done extremely hard labor for 30 years so i think that you know living in a tight small space the size of the room that i'm in right now for just five years in order to make ninety thousand dollars a year and have a nest egg of nearly a million and a half sounds pretty promising to me"
Pending
A specific savings target of $8,591 is identified as necessary to achieve the $1.42 million financial goal.
"in this example today to make the 1.42 million dollars you need to save up a total of eight thousand five hundred ninety one dollars"
Pending
The average US individual can save the required amount in one year by saving 20% of their income.
"for the average person in the united states you're going to be able to save up this money in a year by saving about 20 of your income"
Pending
The FHA program allows the purchase of 1-4 unit residential properties with a 3.5% down payment, enabling individuals to create their own apartment complexes.
"because for the average american living in the average city that's how much it costs to make your own apartment complex yes i said make your own apartment complex see the united states government has a program called fha and they will let you buy a residential property of one to four units for only 3.5 percent down"
Pending
The Excel spreadsheet contains the calculated amount needed for a 3.5% down payment on an average US house.
"now if you look at my excel spreadsheet i took the numbers and that's the number that you need to save up to reach the 3.5 down to buy the average house in the united states"
Pending
An FHA loan can be used to purchase a multi-unit property where the borrower lives in a small designated area (closet, basement, accessory room) while renting out the rest.
"there's a little new known loophole that realistically allows you to take an fha loan to live in a closet to live in the basement to live in an accessory room and rip the rest of the property out"
Pending
FHA loans are permissible for multi-family properties with up to four units.
"the realistic thing with fha is that they will let you buy a multi-family property as long as it's under four units"
Pending
A monthly profit of $823.91 is projected after all expenses, including taxes, insurance, and mortgage, are accounted for.
"you are going to be able to take those numbers and make a profit every month of 823.91 that's after taxes insurance mortgage cost all those things are factored up"
Pending
The initial down payment can be recouped within one year, followed by the purchase of a second property requiring approximately $8,000.
"after one year of living in your house you're going to pay the initial down payment back and then on your second property you're going to spend around another eight thousand dollars to buy it"
Pending
By the second year, monthly rent payments are expected to exceed $1,600 after all expenses.
"on year number two you're collecting over sixteen hundred dollars a month in rent payments after all your bills are paid"
Pending
A five-year investment period is projected to result in $1.42 million in accumulated wealth.
"after that five year period you're going to end up with your 1.42 million dollars"
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By following specific steps, individuals can accumulate $1.42 million and earn an average of $8,500 per month for the remainder of their lives.
"if you follow these steps you end up with 1.42 million dollars with an average income a month of over 8500 for the rest of your life"
Pending
A commitment of five years is presented as a timeframe to guarantee a significant financial outcome.
"would you be willing to do for the next five years to guarantee that you're going to end up with that"
Pending
The average size of newly constructed homes has doubled from 800 sq ft in the 1940s to over 1600 sq ft today.
"in the 1940s the average size of a new built construction home in most of the united states after world war ii was only about 800 square feet today that average house being built is over 1600 square feet which means the average house is enough for two families back during the baby boom"
Pending
A strategy involving government financing to purchase a house, convert it into apartments, live in a closet, and generate substantial income is described.
"you go and get government money you buy a house you turn the house into apartments you live in a closet and you make absolutely insane amounts of money"
Pending
The speaker advises creating a personal apartment complex, which may necessitate living in a small space for a temporary period.
"my play to you is you should be taking advantage of this and making your own homespun apartment complex that might require that you live in a closet or in a basement for a couple months or maybe a year"
Pending
The strategy of house hacking is identified as a method to generate income, with existing resources available on YouTube for further information.
"this is something called house hacking and there's actually a lot of you videos on youtube about how to do house hacking"
Pending
A three-bedroom property can be leveraged for this strategy over varying timeframes (3-10 years), with aggressive number-crunching accelerating wealth accumulation.
"you could take a three bedroom property if you can afford it in your local area and these are market dependent numbers and these are market dependent facts and you could take that stay in a nice bedroom and do this over a six year period or you could do it over a three year period or it could take you ten years to do it but if you get aggressive with the numbers and understand how the math works you end up with the money"
Pending
Individuals are using government funding for properties with minimal down payments, converting small living spaces for themselves while renting out the rest, leading to significant profits.
"they have started refinishing closets and bedrooms and basements and other parts of a property using government money with almost no money down and they've been living in those small segments of the property installing tenants in the rest of the property and making insane amounts of money by following that process"
Pending
A property purchased for $50,000 has generated income and is projected to be worth $125,000 after renovations, representing a significant value increase.
"i bought this property for right around fifty thousand dollars and it's been making money up until we lost the tenant here and it's just one of those things where it gains value every month after renovations it's going to be worth about 125 000 dollars on my initial fifty thousand dollar investment"
Pending
An Excel spreadsheet aims to provide calculations on the timeline, required income, initial investment, and potential outcome of $1.4 million with a $90,000 annual income by employing strategies that may involve temporarily living in small spaces.
"how long it'll take you to do this stuff how much money you need to make to get into it and most importantly how much money out of pocket is it going to take for you to start this insane snowball event that might require you to live in a closet or in a basement for a little while but will ultimately end you up with over 1.4 million dollars making 90 000 a year for the rest of your life"
Pending
The wealthy accumulate wealth by acquiring assets that appreciate in value, while the poor do not.
"this is how the rich get rich and people that are poor stay poor because they're not buying assets or things that gain in value"
Pending
Living in a small space for five years to earn $90,000 annually and accumulate a nest egg of $1.5 million is presented as a potentially lucrative option.
"living in a tight small space the size of the room that i'm in right now for just five years in order to make ninety thousand dollars a year and have a nest egg of nearly a million and a half sounds pretty promising to me"
Pending
FHA and USDA programs facilitate the purchase of rental properties and investments with minimal down payments.
"the government created the fha program and the usda program that allow people to buy rental properties and investments with very little down"
Pending
A target annual income of $35,000 is suggested as a starting point for financial planning.
"you need to find a way to make about 35 000 a year"
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Individuals have achieved multi-million dollar fortunes over a decade by implementing this real estate strategy.
"i found people that have made tens of millions of dollars by doing this over a 10-year cycle"
Pending
A specific savings target of $8,591 is identified as necessary for a particular financial goal.
"you need to save up a total of eight thousand five hundred ninety one dollars"
Pending
The average US individual can achieve the identified savings goal within a year by saving 20% of their income.
"for the average person in the united states you're going to be able to save up this money in a year by saving about 20 of your income"
Pending
The FHA program allows for the purchase of multi-unit residential properties (1-4 units) with a down payment as low as 3.5%, enabling the creation of one's own apartment complex.
"that's how much it costs to make your own apartment complex yes i said make your own apartment complex see the united states government has a program called fha and they will let you buy a residential property of one to four units for only 3.5 percent down"
Pending
The calculated savings target of $8,591 corresponds to the 3.5% down payment required to purchase the average US house using FHA guidelines.
"if you look at my excel spreadsheet i took the numbers and that's the number that you need to save up to reach the 3.5 down to buy the average house in the united states"
Pending
An FHA loan can purportedly be used to purchase a property where the borrower lives in a small designated area (closet, basement, accessory room) while renovating and renting out the remaining space.
"there's a little new known loophole that realistically allows you to take an fha loan to live in a closet to live in the basement to live in an accessory room and rip the rest of the property out"
Pending
FHA loans are permissible for multi-family properties, provided they consist of four units or fewer.
"the realistic thing with fha is that they will let you buy a multi-family property as long as it's under four units"
Pending
Based on provided numbers, a monthly profit of $823.91 is projected after accounting for all expenses, including taxes, insurance, and mortgage.
"you are going to be able to take those numbers and make a profit every month of 823.91 that's after taxes insurance mortgage cost all those things are factored up"
Pending
Within one year, the initial down payment can be recouped, and approximately $8,000 will be needed for a second property purchase.
"after one year of living in your house you're going to pay the initial down payment back and then on your second property you're going to spend around another eight thousand dollars to buy it"
Pending
By the second year, monthly rental income, after expenses, is projected to exceed $1,600.
"on year number two you're collecting over sixteen hundred dollars a month in rent payments after all your bills are paid"
Pending
A five-year investment period is projected to result in accumulating $1.42 million.
"after that five year period you're going to end up with your 1.42 million dollars"
Pending
The average size of newly constructed homes has doubled from approximately 800 square feet in the 1940s to over 1600 square feet currently.
"in the 1940s the average size of a new built construction home in most of the united states after world war ii was only about 800 square feet today that average house being built is over 1600 square feet"
Pending
Individuals are encouraged to create their own apartment complexes, which might involve temporary living arrangements in closets or basements for a few months to a year.
"you should be taking advantage of this and making your own homespun apartment complex that might require that you live in a closet or in a basement for a couple months or maybe a year"
Pending
The timeline for accumulating wealth through real estate investment is flexible, ranging from a few years to a decade, depending on market conditions, property choice, and the individual's approach to the math involved.
"you could take a three bedroom property if you can afford it in your local area and these are market dependent numbers and these are market dependent facts and you could take that stay in a nice bedroom and do this over a six year period or you could do it over a three year period or it could take you ten years to do it but if you get aggressive with the numbers and understand how the math works you end up with the money over the course of just a few years"
Pending
An anecdote is shared about an individual who achieved success through real estate investment by living in a closet.
"i met a guy that was doing this by living in the closet"
Pending
A property purchased for $50,000 is projected to increase in value to $125,000 after renovations, demonstrating ongoing monthly value appreciation.
"i bought this property for right around fifty thousand dollars and it's been making money up until we lost the tenant here and it's just one of those things where it gains value every month after renovations it's going to be worth about 125 000 dollars on my initial fifty thousand dollar investment"
Pending
The disparity between the wealthy and the poor is attributed to the former acquiring assets that appreciate in value, while the latter do not.
"this is how the rich get rich and people that are poor stay poor because they're not buying assets or things that gain in value"
Pending
FHA and USDA programs are available to facilitate the purchase of rental properties and investments with minimal upfront capital.
"the government created the fha program and the usda program that allow people to buy rental properties and investments with very little down"
Pending
Individuals have achieved significant wealth, accumulating tens of millions of dollars, through real estate investment over a 10-year period.
"i found people that have made tens of millions of dollars by doing this over a 10-year cycle"
Pending