I’m sure you’ve heard of this thing, it takes moneymaking. But what if you don’t have one? Well you have to start somewhere. Unfortunately we are not all born with silver spoons.
On the best ways to build leverage, is by buying a multiple family home. With a multiple family home, you can quickly build equity. If this is your first home, you can take advantage of the fact that you can even get a residential loan, meaning that your loan down payment will be much lower than the typical 20% down payment commercial property.
Because of the recent housing bubble burst, and multiple foreclosures this is one of the greatest times to buy a new home. If you buy smart, you can amass large amount of equity in a very short on time. By purchasing a multiple unit home, you can take advantage of economies of scale. You can save money by doing things such as splitting the cost of Internet, cable TV and other amenities. We’ll also have the benefits of having other residents pay money toward your mortgage and property taxes.
If you’re really aggressive, you can go about even having roommates in your place. If you purchase a three unit family home, you can live in one unit and rent out the other two. If you choose to rent the bedroom so I replaced as well you can really push up your leverage. Plan ahead and now you can have multiple income streams. Once you are the owner of the new property, you will now have the benefit of 3 to 4 people paying down your mortgage in addition to your own income.
This is about as close as it comes to living for free by building home equity. Keep in mind however that you will have to do certain things once you become a homeowner. You will now be responsible for things such as maintenance and repairs which need to be factored in when you determine your monthly budget.
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