How My House Hack is Opening Up Doors for Me [Part 1]
Hello BP! In September 2016, I decided to buy a condo in Las Vegas, NV. After watching a couple of BP podcast videos on YouTube, I believed that house hacking was exactly what I wanted to do with my first purchase.
I found an awesome 2 bed / 2 bath condo in a nice gated, golf-course community next to the Las Vegas strip for $120,000.
Here are the numbers:
Down Payment: $24,000 (20%)
Closing Costs: ~$3,000
Interest Rate: 4.25%
Insurance: $30/month
Property Tax: $50/month
HOA: $344/month
Furniture: ~$1000 total (including tenant's room)
Monthly, my total costs are ~$880. My roommate pays $700 total (includes electric and highest speed internet) and I've yet to go a month without a roommate.
This has allowed me to increase my income an extra $8400/year which represents ~20% of my w2 income. The extra cash has now allowed me opportunities to begin my investing career.
Additionally, the Vegas market has been ridiculously hot and the condo has appreciated ~$40k in under 2 years.
I am of the belief that good things happen after good decisions are made. I certainly got fortunate with the appreciation, but I would not be in this position without about 100 'good' decisions that I made before buying this condo, living frugally for multiple years, and working hard to land in a career that pays reasonably well.
I'm very appreciative of this community and will have part 2 coming shortly.