House Hack: How to live FOR FREE by investing in multifamily real estate

House hack: Forget having to make a rent payment or come out of pocket for a mortgage every month. This is exactly how you can essentially live for free by investing in multifamily real estate as a primary residence. Plus – if do it right, you can literally GET PAID to live for free. Here’s how.

When you already have some savings and want to make the jump to becoming a home owner, one thing most people overlook is multi-family properties. These include duplexes, triplexes, and fourplexes. What makes this unique is that in addition to your unit, you have other units that you can freely rent out which can cover your entire ownership cost of the property. When you buy these properties correctly, your rental income from the other units will cover your entire mortgage, property taxes, insurance and repairs, essentially letting you live in one of the units for free. Not only that, but you can apply the rental income towards your loan, meaning you can often qualify for a much larger loan than normal. You’re also paying down your loan and building equity at the same time.

My biggest recommendation to maximize the rental income is to look for vacant multi-family buildings that need cosmetic upgrades. This means you can immediately begin updating the property when you buy it – new floors, paint, bathrooms, landscaping are all cheap and make a significant improvement for rental income.

Now of course, there are downsides of doing this. First of all, you will have to manage tenants and that can be a part time job in and of itself. You will also have some shared common areas – it’s not any worse than an apartment, but you will be in close proximity with your tenants. It’s not for everyone.

But the good news is that when you’re ready to buy a house or upgrade, you can rent out your unit and you have a great cash-flowing rental property for you to keep long term. Essentially when this is paid off, it could be your retirement money that keeps cash flowing month after month. Or, you can live there long term and bank as much money as you can knowing that you don’t have be out of pocket every month for housing payments.

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Suggested reading:
The Millionaire Real Estate Agent:
Your money or your life:
The Millionaire Real Estate Investor:
How to Win Friends and Influence People:
Think and grow rich:
Awaken the giant within:
The Book on Rental Property Investing:

20 thoughts on “House Hack: How to live FOR FREE by investing in multifamily real estate”

  1. way are there so many dislikes for this video he is giving good advice people I have 2 apartment rentals my self and live in one and ready to buy my 3 it’s all about being finically free.

  2. These properties are not treated the exact same by loan companies. That is Bullshit. There are many things they will take into consideration and will only use a percentage of the rental income against your debt to income ratio. It generates to about 75% but that is only after a year or two of actual rental income. You have to have the income to pay the total mortgage without the rental income being considered.Think about it would you give out tthat loan?

  3. Loved your video! Very genius idea, I am definitely going to apply this in my life. Thank you so much for making and sharing this video.

  4. The huge oversight here is that you didn't account for vacancies. So if you have a vacancy for one month out of a year that essentially eats up all of your profit.

  5. Hey graham! I’m getting into my first investment property using this house hack. I’m in the south Florida market, so rents are pretty high. My question is, would it be okay to have investors pay the down payment? I plan on moving from the property after the first year and after that I plan to have enough cash to purchase my second property. I appreciate any advice you can give. Thank you

  6. How in the world am I to do this when duplexes in Los Angeles (where my job is and where I have to live) go for more than the FHA limits, i.e. $850k and up? This might work fine in Denver or wherever but here?

  7. You’re videos are super helpful. I’m learning by watching at least 5 per day. Between you, Cardone, and others; I’m learning a lot!

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