First BRRRR, 100k in equity and Finally living for free
In February 2015 my wife and i purchased our first duplex for $255K using an FHA loan at 3.5 down. We rented the second floor out and lived on the first floor(house hacking). As we payed our mortgage(debt reduction) , the house increased in value after 3 years it appraised for $360K. We had made a little over $100k in equity. In January 2018, we did a cash out refinance and received roughly $50k. We used the $50k plus additional savings to look for our next investment.
Now lets get to the numbers and i will explain how we own two homes and Live for free. Below you will see the current mortgages on both homes and what i collect in rent.
First home
Mortgage - $2600
Rent collected - $1600
Second home
Mortgage - $1400
Rent collected - $2950
Total mortgage - $4000
Total rent collected - $4550
= $550 profit each month and an extra $6,600 a year
Whats next?
God willing my wife and i will use the same method in 2019 and continue to add rental real estate to our portfolio.
Happy Investing my friends :)