Today Chantz Ireland shares his multi-family house hacking story from Marysville, Washington.
Housing hacking is a growing trend sweeping the nation and transforming finances everywhere. With house hacking, homeowners are able to live for free and dramatically reduce their cost of living. You can tap into this life-changing strategy for free! Grab a copy of our House Hacking Quick Start Guide to get started – it can save you thousands with information you won't find anywhere else.
House Hacking Case Study
At 21 years old, Chantz was working as a painter at Boeing in Washington.
Before house hacking, Chantz was living in his dad's basement and paying $300. He wanted to get his own place and build towards financial freedom. Although he hadn't heard the term ‘house hacking,' he jumped at the opportunity to live for free in a multi-family property.
The House Hack
In 2017, Chantz's father was selling a triplex. At that point, Chantz stepped up to the opportunity to purchase the property.
The plan was to rent out the two units and the extra bedroom in his unit to live for free. Here's a closer look at the property:
Updating the Units
After closing on the property, there was quite a bit of work that needed to be done. The big projects included replacing the roof, replacing the windows, remodeling a bathroom, repainting, and changing the carpets.
Overall, the costs of these repairs were $43,000. Chantz was able to complete most of the repairs himself. But he did hire contractors for replacing the roof and replacing the windows.
After the repairs were completed, Chantz listed the property on Craigslist to find tenants. As people inquired, he used Cozy.co to screen potential tenants. Once tenants were in place, he had the rent money deposited directly into his account.
The Numbers of the Deal
It’s time to find out exactly how profitable this house hacking strategy was!
Chantz used an FHA loan with 3.5% down to purchase the $305,000 home. With that, he put down $20,000.
In total, Chantz's monthly mortgage is $1,850, which includes principal, interest, taxes, and insurance.
When Chantz bought the property, the units were each renting for $700 per month. Plus, Chantz was able to rent out an extra bedroom in his unit.
- Gross Rent: $1,850
- Mortgage payment: $1,850
- Cashflow before maintenance and vacancies: $0
- Housing costs before house hacking: $300
- Total housing savings: $300
The cash flow of the property is breaking even. With that, Chantz was able to live for free! While he lived in that property, he saved money to buy his next property.
Want to live for free while someone else pays your mortgage? Dive into housing hacking with our House Hacking Quick Start Guide.
The Learning Curve
As a first-time landlord, Chantz ran into a few mishaps. The first major problem was a tenant that didn't report tiles falling off the bathroom walls. Instead, they continued to take showers, which lead to an entire bathroom remodel. But overall, Chantz is happy with his decision to house hack.
If you are considering house hacking, he recommends, “DO IT! Learn the ins and outs so you can create cashflow to leave your job down the road.”
How to Connect
The Bottom Line
House hacking can completely change your finances. It helped Chantz start his real estate investment portfolio while living for free. What if you could live for free?
If you are interested in creating your own house hacking story, check out our ultimate guide, listen to our house hacking podcast, or read more case studies for inspiration. You never know how dramatically your life can change through this one choice!
If you choose to pursue a house hack of your own, then please share your story with us! We would love to showcase your success.
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