House flipping vs house hacking. What's the difference and how important is it to know these terms before you get started?
In this episode of “Soldier to Billionaire,” David Pehr explains more.
Before you get started in real estate investing, it's important to know these basics. The terms “buying property” and “holding property” refer to purchasing a rental property that you can rent out immediately, with the tenants paying the mortgage. Over time, the property will increase in value and you can enjoy tax benefits. If you invest in the right property, this is a great way to build long-term wealth.
Home resale
Flipping a house is when you buy a crappy house, fix it up, and sell it for more than you bought it for. To do this, you need to have the money up front, and it's a lot of work. Wholesaling is when you buy a house very cheap and sell it to an investor or a house flipper. You have to be pretty good at marketing and selling to do this well.
House Hacking
House hacking involves buying a 2-4 unit home and renting out the unoccupied units. The tenants pay the mortgage and you live in the home for no rent or close to it. One big advantage of house hacking is that you can invest the money you save on rent in other things.
Time to level up?
David Paire is an active duty Marine who is on a mission to educate the military community about financial preparedness. Most people cringe when they hear the phrase, but Paire wants everyone to know that preparedness doesn't have to be a big effort to achieve. He teaches military personnel personal finance and real estate investing to increase their savings and improve their chances of achieving financial freedom.
Want to learn more about Paire? Check out the Military to Millionaire website and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Check out David's book, “The No BS Guide to Military Life” here.
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