How to make money acquiring a house that the bank paid for

[Houseguy No.575517]

I'm tired of seeing people posting that "mortgages are just the bank fucking you" and "owning property is letting the jews win" and all this shit.
Here's how to own a house and make more money with the bank's money than the bank is making.

Find a decent vacant lot for ~$50k. There are lots around if you look online in your area, it doesn't have to be huge but the more you can get over a half acre, the better.
Now the bank will fund you to build a house on that lot, it's called a builder's mortgage. They give you money in increments based on what the final value of the house/lot will be. They have no problem with lending you $200k to build a house that would sell for $300k.
Their first payment has the cover the cost of the lot AND get your house to 40% completion, though, which is where most people struggle to get through. You'll probably need to borrow some money to get through this part, but don't worry, you'll get it back once the build is done. They are giving you the FULL cost to build the house in full, they're just lame about the increments they give it to you in, in order to cover their ass. They don't want to give you the first payment and have you go to Vegas and blow it, and all they can take from you is a vacant lot that isn't worth what they've given you already.


Build a decent house. As in, don't build a piece of shit. Spend some time looking at floorplans and decide on what you're able to afford square footage wise. I just recently built a 1750sq ft home with a fully finished basement for ~$200k. The monthly payment on our mortgage is ~$950 without tax. Make sure your building contractor is including the price of a fully finished basement in the total cost. Two bedrooms, kitchen, bathroom, laundry room in the basement, and there are two sets of stairs to access the basement. One is from the garage, one is inside.

[Houseguy No.575518]

Complete the house, and rent the basement out to either a couple or two separate people.
Price the rooms comparatively to what a dorm room costs at your nearest college/university if you're near one, and if you're not, make sure it's priced comparatively to other rented properties in your area. If shitty ass two bedroom apartments that are small in an apartment complex are being rented for $1000/mth, you can get more than that easily. You are offering a brand new, clean, never been lived in, LARGE two bedroom apartment.

Now, use their rent to pay your mortage off. Where I am, shitty fuckin dorm rooms are rented for around $600/mth. That makes renting the basement to two students EASY for $1200/mth, because it's the same price as a dorm but a hell of a lot nicer. We're close to a university, so that allows us to be a bit more choosy with who we want living there as well.

With the mortgage being $950/mth and rent coming in at $1200/mth, any amount of money you are able to save is able to be chopped right off of your mortgage. My fiance and I budgeted ourselves around $1100/mth, so I know we are comfortable with giving that up. So we put that on top of the rent, and the mortgage gets paid of way faster.

By renting the basement out and also holding ourselves responsible for "paying" the mortgage ourselves as well, we are able to pay off a shitpile of the mortgage over the course of two years. The interest in the first year was around $6500, and we're aiming to pay off close to $28k. The second year we'll pay off a similar amount, but the interest will be less.

[Houseguy No.575521]

In two years time, we'll be able to sell a house that we initially paid $200k for, and have the mortgage paid down to ~$190k, for $375k.

That's $175k in our pockets, but we paid ~$55k into the mortgage on that. Now, we could have done that right off the hop (sold it), but the house value is still pretty much "brand new" after two years. Also, if you don't live in the house for at least a year (I think) you get taxed on all that. So you might as well live in the new house you just designed and built for a couple years.

So basically you start with fuck all, nothing, and go to SAVING ~$50k over the course of two years for living in a new house and renting the basement. You don't even have to sell it, if you stay there and continue doing that, you'll have the mortgage paid off in EIGHT YEARS. The bank gave you the money hoping it'd take 25.
Now, you don't have to pay the mortgage off that fast. If you're okay with giving the bank way more in interest, you can have your tenants pay the mortgage for you forever. You're still on the hook for property tax and utilities and all that, but not having a mortgage in a brand new house is pretty sweet.

[Houseguy No.575522]

Here's the numbers because I know people will try to say that it's bullshit. You need to make enough money in order to support an $1,100 mortgage payment, that's it. If you can make the mortgage payment, the bank is happy to give you the money and rape you on interest over many years.
Those of you paying rent probably pay close to that already.
My bank is CIBC so I used their mortgage calculator for reference. 2.79% on a four year fixed rate

I'll use $230k rather than $200k in case your build doesn't go as smoothly.

https://www.cibc.com/ca/mortgages/calculator/mortgage-payment.htm
>First year
$230,000 + $6417 interest = $236,417 owed
Payment is $1,064/mth = $12,768 per year
1200 in rent x 12 months = $14,400 per year
You are paying $1,100 per month = $13,200 per year
So you're paying off $27600 total minus the interest per year

Which means, after the first year, you owe $208,319
>2nd $208,319
>3rd $186,028
>4th $163,112
>5th $139,551
>6th $115,329

So now you've lived in your house for five years. The bank will make ~$3200 off of you in interest the following year.

>7th $90,426
>8th $64,823
>9th $38,501
>10th $11,440

And obviously the entire mortgage is paid off in the 10th year.

[Houseguy No.575524]

So, to round this all up, the bank lent you $200,000 with the intent of you taking 25 fucking years to pay it off. This amounts to them raping you in interest because you took so damn long to pay it.

You paid the entire thing off in 10 years, and you were under zero pressure the entire time because, if something were to happen in that time and you were in need of money, your mortgage for that month was already paid regardless. You don't even have to be frugal with your savings, this is assuming that you're holding yourself obligated to pay for your own mortgage and that's IT.

Now, you own a house that costed $200,000 to build.
The bank made ~$34,480 in interest. (Calculated with $230k, would be less on a $200k build)
You own a house that can be sold for $300,000+ easily, and now you are making $1200/mth right into your pocket if you don't want to kick your tenants out and take the basement back for yourself.

You borrowed money from the bank... and you made a lot more money with it than the bank did, as well as got yourself a new house to live in, and worry-free mortgage payments for a decade. Oh, and you own a house in 10 years, and that's by holding yourself to the bare minimum of paying your own mortgage and having tenants. If you can save more than that, you could have it paid off faster.

I personally am allowed to pay up to double the monthly mortgage payment per month, as well as 20% of the total cost of the mortgage in a lump sum payment once per year.

[Anonymous No.575525]

>>575521
You have to live in a house for 2 out of the last 5 years to get the tax break (so you have to have had it for 2 years at least).

[Houseguy No.575526]

>>575525
>You have to live in a house for 2 out of the last 5 years to get the tax break (so you have to have had it for 2 years at least).
That's why the post you're quoting begins with the words "in two years time" lol

[Anonymous No.575562]

Hey house guy.

What do we need to qualify for said builder's mortgage. And could you provide a few examples of homes they would approve/the one you had built? Maybe even time built for the home. Any details would be great. Thanks homeguy

[Anonymous No.575574]

>>575562
>What do we need to qualify for said builder's mortgage.

It's similar to qualifying for a regular mortgage, but it's riskier so the bank won't give you quite as much money. Which is fine, because it costs way less to build a house than to buy a comparable one, anyway.

Approach your bank and ask them about being pre-approved for a certain cost of the house+vacant lot.

> And could you provide a few examples of homes they would approve/the one you had built? Maybe even time built for the home.
A contractor that builds homes for a living would be able to provide you with drawing templates for houses they have built in the past. I'd recommend you get them to give you a few they've already done before, and make a few changes to suit your needs from there.

I personally am able to envision what the layout of a house will look like around me, I think I'm quite good at that, so I designed our entire layout myself based on what I wanted. If you're not confident in your own abilities to not design a shitty house, go with a design that has been proven already and make minor changes to it. The bank doesn't care much, honestly. They just want to ensure that it's not a retarded design.

As for the time to build, it depends on the builder, the size of the home, and the time of year. Our builder completed the house in 90 days, which is just about unheard of. Yours would almost certainly take longer, but I can't speak for the contractors in your area. They might have certain models down to a science by now.

[Anonymous No.575580]

This doesn't assume you have kids, right?
How would that effect everything?
You should make a Khan Academy -esq video to make this easier to understand.
Plus the ad revenue on this video could be good.

[Anonymous No.575581]

>>575574
Building new is more expensive than buying existing in general, since developers benefit from economies of scale and there's a better possibility of finding a deal.

[Houseguy No.575590]

>>575580
>This doesn't assume you have kids, right?
>How would that effect everything?

Honestly, it shouldn't matter much. I would just take more care in ensuring that your house design lends itself to having kids. For example, my fiance and I built a three bedroom (on the main floor, ours) bungalow. One bedroom is where I keep and clean my guns. The other is storage.

If we had a kid, it wouldn't change our situation much. But I'd advise that you make sure that the louder rooms, such as the kitchen and living room of your basement tenants, aren't directly below your kids (and your own, for that matter) rooms.

>>575581
>Building new is more expensive than buying existing in general
Bank shill plz.

Building new is far, far less expensive than buying existing, unless you're planning on buying an absolute fucking dump of a place and then trying to argue that it's comparable to a brand new home due to the size of the house alone.

[Anonymous No.575599]

What if the tenants move out and college isnt in school? What do you do there? How long do your tenants usually live there?

[Anonymous No.575604]

My father owns a construction company and i'm currently under his wing trying to learn the trade, once i get more experienced and take over the company, get a crew, do you think it would be smart to line up some jobs and have them work on paying customers and i work on the house myself, costing only materials, my time, and some help?

[Houseguy No.575606]

>>575599
>What if the tenants move out and college isnt in school?
You mean for the summer?

If they move out, you find replacements. How you price the apartment is key in that. Where I live, absolute shitfest single bedroom apartments rent for $650/mth. Dorm rooms are $500/mth. It's common for a house with four bedrooms to be rented out separately to four different students for $600/mth each.

Nobody wants to live in a dorm, dorms suck shit. It's not hard to rent out a nice, big, new basement apartment to two students when it's comparatively priced to a dorm room.

>How long do your tenants usually live there?
Depends on what their courses are like, if they work in town, etc. A lot of students will go home to visit for the summer but I don't think it's very common for them to full blown move home and then move back out again. It's more common than you'd think for them to just pay rent through the summer, as most are working to try to save money anyway.

[Houseguy No.575608]

>>575604
>do you think it would be smart to line up some jobs and have them work on paying customers and i work on the house myself, costing only materials, my time, and some help?

My father owns a company too. That sounds like a great idea to me. I did a lot of the work on our place because I'm in a trade and have a working knowledge of most of the trade work required. If you get your head around what is required, it's way, way easier. I've been talking as though people have to go to a general contractor and make them the boss, and they work for you to keep the job running.

If you are able to do that yourself (it requires a lot of planning) I would say definitely go for it.

[Anonymous No.575609]

>>575517
Not to be rude but if you are not experienced in development you will 100% lose money on this idea.
Since the contractor you hire doesn't give two shits about your loan they will always go over budget and will be delayed.
Once you factor in how much you are paying them per day/week of delay you end up significantly reducing your profit.
Even then you take on a full time job of ensuring the general contractor is doing his job, this is not worth the additional 60-50 grand a year they make because it will stress out an inexperienced person.

[Anonymous No.575616]

Can a NEET do this?

[Anonymous No.575617]

>>575608
Im just not sure how much i can learn before i dont become the foremans righthand man. Im stuck in school right until june (HS graduation), and then for the summer i leave for bmt and tech school with the air force. By the time i come back and can work he will be nearly 60, and with a small construction company im not sure where i will land, i also plan on going to college, do you think it will be easy to find a good construction job with my experience? Not just some digger?

[Anonymous No.575622]

>>575609

When you hire a GC, you negotiate how much they are making on it before the build begins. There is no "once you factor in how much you are paying them per day". It's a round number that you both agree to.

If it takes longer than you initially agreed upon, they don't make more. You aren't paying their hourly wage on a time and material, it's a quoted job.
>they will always go over budget
Nice blanket statement lol

>Even then you take on a full time job of ensuring the general contractor is doing his job
lol what? The GC's full time job is to run the job. How is it a full time job ensuring that he's doing his job? He's on site all day, every day.

[Anonymous No.575623]

>>575609
Im just going to add a couple of things, just in case someone is actually planning on this.

If everyone could do this everyone would be rich.
In Canada (west Vancouver more specifically) the Indian sub contractors are always the cheapest and give you a reasonable quote, let's say 500k and will be done within a year. And knowing you, you want the cheapest because the bank didn't give you enough money to secure the good guys.

They sign a contract with you and bla bla bla, you think its pretty airtight.
First two months you think there is a lot of progress going on, the foundations excavated and the frame is going up nicely. Then they disappear for two weeks, and its impossible to reach them.
Lame excuses happen and your project is delayed. They will then continue onlynsending one or two subcontractors to work at a snail pace, just to keep you happy that "something is getting done".
You are still obliged to pay them although no progress is being done.
You are now 8 months into your project and the house is far from complete and you don't have enough money to pay them to finish and the bank won't give you any money because you are not far enough along to recieve additional funding.
If you try to sue them it will take another 20grand to win, money you don't have.
They find another job and you are stuck with a half completed house with an exorbant amount of debt.

Unless you have experience (or fa amily member who is a general contractor) in the construction field please stay away from developement.

What I said happens to 70% of all inexperienced people who try to do this get rich quick scheme and if they do make a profit they say it wasn't worth it.

I have been doing this for 6 years and the stories are the same but do your own research and due diligence.

[Anonymous No.575629]

>>575617
Dude, you've got plenty of time to learn a lot. I don't want to say that it will be easy to find a job, but experience is, by far, the biggest factor in finding one.

And there's nothing wrong with being some digger to start. The guys that rise in the ranks fastest are the ones who aren't satisfied and are looking to learn more and take on more responsibility all the time. The fact that you don't only want to be a digger is what will make you stand out. Look at what the other guys are doing, and ask what else you can do, always. Always be asking with how you can help everyone around you. Ask the other guys what their plan for the day is, and ask the foreman how you can help them.

Even though he's almost 60, he'll be able to provide you with advice for years and years bud. You've got a guy you can call up and ask for help when you need it. That's huge.

[Anonymous No.575638]

>>575622
>how much per day
I meant office rental, tool rental excavation, waiting for permits to process and other miscellaneous tasks that usually cause delays if the GC doesnt know their shit.
You are still paying for the property even if no work is being done through taxes, utility, potential loss of income caused by delay.

>go over budget
They always add a 10-15%(but not on the paperwork's main estimate, usually in one of the finenprint sections of the contract) lap but most customers are fooled into thinking they will be within the budget

>lol what
You clearly haven't worked as a GC, or manager, you always have to ensure you have other jobs lined up.
Most of the time the GC shits the bed when they realize the owner only checks up on them once a month.

[Anonymous No.575648]

>>575517
I'm doing something similar. I have ~$125K saved up, I bought a nice plot of land in a high end subdivision for $57K, the bank is loaning me $300K at 5.95% interest (18K in interest per year), I'm building an apartment quadraplex (4 town homes), really nice ones. Rent will bring in around $825-$850/month, so in total about $3,400/month.

Once the construction is done, my payments will be roughly $1,400/month. My rent pays that & leaves me $2K left over to save/pay down that mortgage.

If I did nothing but let the rent pay it off, it would take over 20 years, but this whole time the rent is paying the mortgage. With my income, I make about 100K per year and have next to no expenses (still with my folks), I can easily pay it off in 5-7 years, probably a lot quicker.

Once it's paid, I'll be getting in close to $40K a year in rent, and I'll start the process all over again.

[Anonymous No.575649]

>>575623
>>575623
>They sign a contract with you and bla bla bla, you think its pretty airtight.
>First two months you think there is a lot of progress going on, the foundations excavated and the frame is going up nicely. Then they disappear for two weeks, and its impossible to reach them.
>You are now 8 months into your project and the house is far from complete and you don't have enough money to pay them to finish and the bank won't give you any money because you are not far enough along to recieve additional funding.
Okay, first two months? Are you kidding? My basement was excavated, the foundation was built out of Logix block and poured, and the house was framed in in three weeks. TWO MONTHS in and they are still framing? What in the fuck bud. It takes a few days for ONE guy to dig the basement. It takes a week for two guys by themselves to do the foundation and pour it. An organized crew can frame an entire house, trusses and everything, in one week. Electrical can be roughed in in a day. Plumbing can be damn near completed in a day. HVAC is one week, tops, that's ductwork and everything.

Three guys can drywall the entire house in less than a week. How in the holy shit did you get from two months to eight months? Your GC should have been fired after the first few weeks.

>Lame excuses happen and your project is delayed. They will then continue onlynsending one or two subcontractors to work at a snail pace, just to keep you happy that "something is getting done".
Where is the GC this whole time? Organizing the sub trades is his godamn job lol
>You are still obliged to pay them although no progress is being done.


Have you ever done this before in your life?
>If you try to sue them it will take another 20grand to win, money you don't have.
>They find another job and you are stuck with a half completed house with an exorbant amount of debt.

holy fack bud

Don't hire a bunch of cheap greasy indians, seriously. You are going full blown worst case Ontario here.

[Anonymous No.575664]

>>575638
>I meant office rental, tool rental excavation, waiting for permits to process and other miscellaneous tasks that usually cause delays if the GC doesnt know their shit.
Again, don't hire a bunch of greasy clowns.
>You are still paying for the property even if no work is being done through taxes, utility, potential loss of income caused by delay.
lol the taxes on our vacant lot was like $90/mth. If you think that could possibly EVER add up to a potential loss of income caused by delay, your build was doomed from the very start.

>You clearly haven't worked as a GC, or manager, you always have to ensure you have other jobs lined up.
>Most of the time the GC shits the bed when they realize the owner only checks up on them once a month.
I have worked in a trade my entire life. I know exactly what a GC's responsibility is. It is not "a full time job" ensuring that he is on schedule, the contractor has to give you a full schedule of completion for each stage before the build even begins. The bank won't give you a cent without knowing what has to be complete by what date. It's not hard to call him up and say "schedule says the framing is completed by Dec8th. You guys still on schedule?"
The bank gives you chunks of payment in draws, meaning they don't get paid more money if they don't make it to the next stage of completion. It is in their best interest to get to the next stage of completion.

Your scenario of a contractor just packing up and leaving site forever is ridiculous.

[Anonymous No.575682]

>>575664
OK you win.
Gg

[can you please share the permi(...) No.575685]

can you plecan you please share the permit

[can you please share the permi(...) No.575687]

>>575517

[Anonymous No.575693]

>>575685
>>575687

All of the permits, you mean? Or individual costs for each one?

The costs of all permits are included in the quote you agree to with the contractor. Off the top of my head, our building permit was $12k, the septic permit was $750, the electrical permit was $500 plus $480 to the hydro company to install a new hydro pole and install our service. The drawings, floorplans etc was $1000.

[Anonymous No.575903]

Aaand why would you share all this info on a columbian pictures exchange site?

>"If it's too good to be true - it is"

[Anonymous No.575909]

>>575517
>They have no problem with lending you $200k to build a house that would sell for $300k.

It's 2006 all over. If you are blessed with the magical skill to build 300k houses for 200k, you should start a home building company.

Or you do own a building company and claimed all your materials and land as a business expense.

[Anonymous No.575951]

>>575524
>I personally am allowed to pay up to double the monthly mortgage payment per month, as well as 20% of the total cost of the mortgage in a lump sum payment once per year.
>limited in how quickly you can repay debt, by the lender

Wait, seriously? Is that fucking legal? I know OP is in Canada but that shit doesn't happen in the US does it?

[Anonymous No.575952]

>>575616

if you have the money for the down payment and means of securing a loan, which would probably be problematic unless you had proof of substantial wealth in the absence of any income (and you can't count renting it out as income for qualifying for loan purposes unless the rental has it's own kitchen bathroom etc, in most jurisdictions.)

so probably not.

[Anonymous No.575962]

>>575951
Have you never heard of a term loan before? You can pay more than the amount anytime you want but you're penalized for it so that the bank can make up the interest cost they miss out on by you prepaying. You can get an open mortgage instead of a closed if you don't want to be restricted like that, but it'll be at a higher rate.

[Anonymous No.575963]

>>575623
>"We will build this house for you for x dollars in y time."
>they sign the contract
>you sign the contract
>for some reason it's going to cost you 20 grand to get a lawyer to tell the judge "hey these guys ignored contract law"

What, do you work for a major home developer or something?

[Anonymous No.575991]

>>575521
>Also, if you don't live in the house for at least a year (I think) you get taxed on all that.

Close, in the US it must be two out of the past five years both owned and your primary residence. Meet both requirements and you can exclude a gain of up to $250k if single or $500k if married.

The smarter general contractors, real estate agents, etc. that I know do this every handful of years. It's a great tax planning strategy.

[Anonymous No.576610]

>>575909
>If you are blessed with the magical skill to build 300k houses for 200k, you should start a home building company.

lol are you implying that home building companies don't exist in 2014?

Building a house is cheap buying one outright, and houses can be built and sold for more, bud. That's why builders exist. lol

[Anonymous No.577599]

bump for discussions sake

[Anonymous No.578328]

Well fuck me if nobody cares about this.

[Anonymous No.578331]

I worked in construction for 20 years- people that do what OP did fail at about 50 percent. Lower chance of failure in a building boom though permit shit brings down a lot of people and when building craps out a much higher chance of failure and unless you have a real good job failure means bankruptcy.

[Anonymous No.578337]

>>575648
Making 100k/yr and mommy is letting you live at home for free. Wut?

[Anonymous No.578571]

Sophisticated real estate-based question incoming
I'm looking to buy my first property that's close to work, the plan being to live in it for a while and rent out a room, work on it, then move out and rent it out completely in a couple years. I'm looking at condos. How do I start analyzing HOA fees? A lot of the places in looking at have yearly HOA fees of ~5% of the value of the condo. By what factor do these fees go up every year? What should I look into in regards to HOA fees?

[Anonymous No.579423]

>>578571
I'm not sure what you're talking about to be honest. Best to let someone that does try to help you.

>>578331
>pulling numbers out of my ass edition

"Yeah, I worked in construction for a long time, people in general don't make money building houses, I know because I talked to the owner a couple years after every single one"
get the fuck out of here bank shill

[Anonymous No.579443]

>>575517
Sounds like a load of bullshit

[Anonymous No.579456]

>>579443
you sound like a faggot

funny how applying your own logic to you makes you a faggot

[Anonymous No.579458]

I am not sure why americans buy a house but here in europe people generally do because they want more privacy. Having strangers live in your basement for a fucking decade is probably not what most of them imagined.

I dont really see how anyone could apply this "concept". Not even starting on the fact that the people who live in your basement might not be trustworthy at all. Its too much of a pain in the ass, involves too much risk and completely defeats the purpose of why most people are getting a house in the first place.

[Anonymous No.579467]

>>575524
wow this makes so much sense.

[Anonymous No.579511]

>>579467
yeah baby

>>579458
In North America, owning a ~$300,000 house by the time you are 30 is not very common, at all. I would guess that 90%+ of all adults pay their mortgage well into their 40's and 50's.

>it's too much of a pain in the ass
Yeah, saving $80,000 in interest while acquiring $300,000 in equity over the course of the 10 years between 20 and 30 years old is tooootally a pain in the ass. totally not worth it bros, you might as well live it up and bounce from apartment to apartment and back to your parents once or twice through your 20s like most young adults do.

Being worth over $300k at 30 years old and not having a mortgage is totally a pain in the ass bros

[Anonymous No.579513]

>>575517
This is one of the best threads on /biz/ and should be a sticky or at least archived.

[Anonymous No.579520]

>>579511
See, thats the problem. You dont understand why most people want a house. All you see is the amount of money they can save while in reality they are probably getting one for comfort, to feel at home, have their own 4 walls they can do whatever the fuck they want in.

Stress can very well lead to problems. Problems that you might be willing to pay for instead. You simply present a concept and act like you know all the variables and their values. Spoiler alter: you dont.

The fact that you use the term "bro" shows how mentally challenged you actually are.

[Anonymous No.579556]

Hmm interesting idea.
I've always wanted to build my own house. Where do you learn all you have to know? I think i can make a home very cheap with some networking. my dad is electrician, my uncle is almost a retired construction worker and i know a few architecture masters from college. It will at least take 5 more years till i have the masters degree in my field so how should i plan this building a home thing?

[Anonymous No.579559]

>>579520
your critique isn't without problems either.

If you actually want to poke holes in OP's plan, your "stress leads to problems" is not the way to do it. You're probably going with your gut feeling rather than thinking rationally.

Sacrificing your "privacy" for 10 years so you can have a 300k house when you're 40 with no mortgage on it sounds hella sweet. Especially if you build smart and make it so that they can reach their room without going through your house.

The real problem with OP's plan, apart from the "too good to be true" factor, is that it probably relies a lot on conditions being just right so you can take use of his advice. I'd look into it (live in EU so houses are not made of wood/drywall here, another factor to consider for myself). However even if you find out that it's a good deal by looking at room rental offered in your city, it's unlikely they come back and say "thanks for advice OP I have figured out this is a positive investment within 15 minutes of researching it I'm well on my way to being rich now!"

It's certainly a direction to consider though.

[Anonymous No.579620]

>>579520
>See, thats the problem. You dont understand why most people want a house.

See, here's your problem: You are relating my strategy with the "average" person buying a house. The vast majority of people that are in the market for a new house are doing so because they are looking to start a family, have kids, etc.

This strategy is for the young, passionate jews who want to save money through their 20's and plan way, way ahead in comparison. Yes, most people want to buy a house for privacy, you are correct.

Yes, the fact that you're even implying that those people are ~20 years old is fucking retarded. Every single person wants to own a house eventually; this allows you to do it much earlier, and with less stress than the usual path taken. That's just my opinion, but your entire post basically consists of "I'm too lazy" and "20 year olds want privacy more than money" and doesn't present a reasonable alternative either, so I'd say my opinion is a lot more valuable than the sack of shit you've brought to the table here bud.

Also, you know how sometimes you can mock a stupid person to their face, but they're stupid so they don't get it, and they'll either laugh or mistake your sarcasm for seriousness? Yeah, that. Notice how my entire post you quoted is just dripping with condescending sarcasm? I was using the word bro to mock you, you mongrel.
>>579559
Having your entire mortgage paid off on a house that is actually nice in your 30's is definitely a sweet goal to be able to reasonably attain.

And yes, it does rely on a lot of conditions lining up properly. It's definitely not something you can rush into, it requires a considerable amount of planning.

[Anonymous No.579623]

>>579556
>Hmm interesting idea.
>I've always wanted to build my own house. Where do you learn all you have to know?
I personally do HVAC for a living, so that definitely helps with understanding what exactly needs to be done. When you have a basic understanding of what core aspects need to be completed and in what order, it becomes a lot easier. You could probably google all the steps to finish building a home, but I'd recommend you invite your uncle over for some whiskey and cheese and go over it with him. He'll be a fountain of good advice for you if you're seriously considering following through.

> It will at least take 5 more years till i have the masters degree in my field so how should i plan this building a home thing?
You have a long time to plan, which is a boon. Start monitoring how much vacant lots are selling for around the area you'd like to live. I'd recommend a lot on the outskirts of town, but close to a college or university. It's super easy to rent to students that way, and when you don't live in the city, they won't bring friends back to your place after they go to the bar. They have a $30 cab ride home, nobody is jumping in on that.

If you live in the city, obviously you might not have much of a choice in that regard. But start looking at vacant lots, make a goal for yourself financially over the next five years and hold yourself to it, and maybe look around for a book of house plans and start trying to decide on what you like. Your uncle should be able to set you up with most of what you need, really.

[Houseguy No.579625]

>>579620
>>579623

by the way everyone this is OP, I'm on site right now and not at home/in the office so it changed my ID.

[Anonymous No.579635]

>>579625
Hmmm okay thanks for the info well i live in europe (even worse in the netherlands) so your case isn't much applicable to mine.

Every square meter has a very detailed destination plan and it's legally a hell lot of work before you can even start building. You cant just build a cartboard house like they do in america but i havn't done very much research yet. construction companys build homes all the time with profit so it shouldn't be impossible for a single person to build 1 home somewhere near a city.

[Anonymous No.579648]

/biz/
you can do the same thing with shitty forclosures
buy the shittiest house on the block (the one i bought was 30,301 for 2bed, 1bath, 1000 sqft house on a 7000 sqft lot in downtown billings montana. my mortgage is ~180 a month. i rent out the back bedroom and the laundry room to poor SSDI kids, 180 bucks a head. pull in 540 a month. that covers taxes, insurance, mortgage, utilities and leaves 100ish a month plus my income to fix it. total investment on my part is 2G to remodel the bathroom, water heater, and appliences. i live for free, my roomates dick around on gaia online all day so i never see them, and i have new concrete siding, sod, and driveway pavers ordered for the spring. since housing is in high demand, i can buy other houses near me from the slumlords and expand that way all while never having to put any of my money into the venture. the new lot idea is great if you have the credit and time to ivest, but a shitty forclosure that you can fix as you go is 1/8th of the investmen to get started.

[Anonymous No.579787]

what are the tax implications of doing this as a business?

I have access to a major US city undergoing a rebirth, where lots of land sell for less than 10g's. I would like to build duplexes and triplets and rent them out, so they wouldn't be my primary residence.

Any idea how the costs would increase over your single-family calculations?