The Live for Free Strategy is a simple real estate investment involving a two-step process, with a very compelling result.
Step One: Buy a five-bedroom house (or a house to be converted to five bedrooms)
Step Two: Rent out four bedrooms for $500 each
Result*: You, or your student, lives for free in the master bedroom (as well as all the other advantages of owning real estate)
Of course, the execution of the strategy is not quite so simple. You need to deal with purchasing and financing a property, as well as managing the bedroom rentals. It may seem like a daunting task, but Lion Realty is here to help every step of the way. We can help you:
-Find the best house to fit your needs
-Negotiate the best deal possible
-Discuss financing options for student/parenthomebuyers
-Strategize about bedroom additions and remodeling
-Prepare drawings and gain plan approval at the Building Department
-Arrange estimates from qualified contractors
-Equip you for bedroom rental management
-Anything else that you might need during the home buying process
The following is a very simple financial projection for the Live for Free strategy. You should expect to pay somewhere between $275k-$400k for a house. The price difference will depend on many factors, including the neighborhood, the size of the house, number of bathrooms, cosmetics, and for our purposes: whether the house is already five bedrooms or needs to be converted to five bedrooms. To be safe we will use a $350k purchase price with a 4% interest rate, and 5% down payment.
Down Payment %
*These projected results are by no means guaranteed, but achievable under most circumstances.