House Hacking with Coach Carson

016 | House Hacking With Coach Carson

Have you heard of House Hacking? Break the game with this powerful lever

In Today’s Podcast we cover:

  • Real estate investing and house hacking with Chad “Coach” Carson.
  • On the path to financial independence, how much of your own budget is going towards housing?
  • After Chad graduated college at Clemson, he got started with real estate investing in his college town.
  • How financial independence and real estate investing have allowed Chad to move his family to Ecuador for about 1.5 years.
  • When they moved to Ecuador they sold most of their possessions and rented out their house for 2 years.
  • When Chad graduated college he kept his expenses extremely low and actually moved into his business partner’s spare bedroom to help save money.
  • This led to his concept of “house hacking” as a way to keep housing expenses down to nearly zero
  • House hacking: buy a multi-family rental unit and live in one unit while you rent out the rest and have them essentially pay for your house payment entirely
  • Easy to become rich saving the money you’d otherwise be paying for your house and car payments
  • Keep it simple and pay attention to the fundamentals with your financial life
  • How do you get started with real estate? Where do you find a multi-family unit to buy?
  • What to look for: neighborhoods with charm, safe, public transportation nearby
  • Avoid cookie-cutter neighborhoods on the outskirts of town with new construction
  • Chad recommends hiring a real estate agent at the beginning. Have them run searches based on your desired neighborhoods and automatically send you new listings.
  • It is essential to walk the neighborhoods and talk to people to gather intel. Tip: walk with your kids to seem less intimidating and go on a Saturday morning when they are out
  • It’s important to think differently and take that extra step to find great deals. Have to reach out to people and get outside your comfort zone
  • Real estate: The numbers crunching has to come into play at some point. Put together a profile of what makes a good deal upfront
  • Follow the ‘1% rule’: You are looking for the monthly rent to be 1% of the purchase price ($1,000 per month rent = $100,000 house price)
  • Chad was able to pull his equity out and invest in another deal
  • Small investors need to avoid 5 or more unit complex in order to get the most favorable owner-occupied financing
  • Once you have an owner-occupied financing, you can move out and keep the favorable financing rates and rent all the units
  • How to get started finding financing if you have no money saved and no contacts?
  • Options: FHA 203k Loan in order to remodel and do a house hack or Fannie Mae Remodeling loan
  • Building relationships with local real estate investors and private lenders
  • Real estate debt snowball to fully own these properties as a path to wealth and financial independence
  • Chad’s personal strategy: 15% of his assets are currently in index funds with a goal of up to 33% and the vast majority of the rest is in real estate, cash and financing/note investing
  • Chad and his business partner have approximately 90 rental units currently
  • Chad is not interested in growing as large as possible – he wants to find a balance in life and keep it as simple as possible to meet his financial independence goal
  • Hot Seat Questions
  • Favorite life hack: Planning and actually writing it out. Weekly, monthly, yearly
  • Biggest mistake: buying into other people’s goals and getting sloppy with purchasing a lot of properties at the height of the 2007 bubble

Listen to Brad and Jonathan's thoughts about this episode here.

Links from the show:

Books Mentioned in the Show:

Your Financial Resilience Toolkit

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6 thoughts on “016 | House Hacking With Coach Carson”

  1. Thanks for the mention guys. With all of the great writers and content out there, that was a pleasant surprise to hear my post called out. Too cool!

  2. Been meaning to post on this for a while now. I feel like where we chose to live is an amazing hack. We live in a remote mining town where our housing is paid for by my husband’s employer. In addition to that, our family insurance is paid at 100%, we have a free golf course in town, free fitness center, free swimming pool. Plus, we have a fully stocked grocery store in town, a medical clinic, fire department, secondhand store, auto parts store, public library, and 2 gas stations. So while we are over an hour to the nearest town, we don’t lack for much. We walk and bike around town much of the time. Only have 1 car, since we “go to town” as a family. We are able to save a huge percentage of our income, while living the life! Bonus: we both work for the school which just went to 4 day school weeks this year, so we have 3 day weekend every week! Kids love that, and so do we!

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