Housing hacking is one way to accelerate your path to financial independence. By lowering or eliminating your housing costs, you can increase your savings rate. If you implement the LeapFrog house hacking strategy, then you can build a real estate portfolio while enjoying the other benefits of house hacking.
We will cover the LeapFrog house hacking strategy in detail. It could be the next step in your financial independence journey.
Leap Frog House Hacking
The LeapFrog house hacking strategy involves moving from one house hack to the next.
When you purchase the first house, you’ll set up the house hacking strategy that works for your lifestyle. Whether you choose to find long term tenants or use a short term rental platform like Airbnb, the goal is for the rental to cover your mortgage. Even if you are only able to cover half of your mortgage, that is a great savings! Another strategy is to flip the house while you are living in it. Once you are done renovating the home, you’ll likely be able to fetch a high rental income when you move on to the next house.
After a period of time, you’ll seek out your next house hack and purchase that property. However, you won’t sell the first house hack when you move. Instead, you’ll start renting out the entire home for a larger rental income.
Generally, you will move from one house hack to the next every two years. This will allow you to take advantage of the best owner-occupant financing without running into any problems.
If you were able to move every two years, you’d have five income-producing properties at the end of ten years. That is an amazing way to build your real estate portfolio without overstretching your budget along the way.
With a solid real estate portfolio that is producing an income, you’ll quickly supercharge your path to FI.
The Bottom Line
No matter how you slice it, house hacking is a great way to accelerate your path to financial independence. However, the LeapFrog house hacking strategy is an especially powerful way to reach your FI goals.
Check out our house hacking guide for more ideas on how to house hacking could fit into your life!