>get a mortgage for a house>fill it with roommates>show a bank that its generating income for 6-12 months>bank gives u a loan for another house despite the fact u barley even started paying this one off>rinse and repeat while collecting dividendsI've been doing reserch and I cant find any holes in this plan. Allegedly the big beautiful bill made it even easier to play the borrow till u die game. Its how 80 percent of millionaires in the US got minted. Anyone got proof this doesnt work? I even spoke with a mortgage broker and he confirmed it.. I cant find any holes in this scene and about to start.Only downside is hear is "dealing with the renters". Dont do it in a state that prevent evictions and get renters insurance. Learn plumbing(its so fucking easy)..
Rent it to make porn film, it is even more appealing, literally free money glitches.
>any holes in this planNiggers, people trashing your shit, or natural catastrophes etc., the slim chance of a RE crash and lower rent pricesIsnt the rich dad poor dad guy doing exactly that with like 1 billion in debt
>>61437395>holessome young cunt in straya had numerous properties near 70k a month combined mortgage repayments, was AirBNB'ing the lot, was working well. then the coof came. wiped him out overnight.
>>61437421Renters insurance and vet ur Renters, simple as>>61437431In that case dont start any business and keep gambling on shitcoins, bitcoin is doing great!!!
>>61437395>I even spoke with a mortgage broker and he confirmed itkekok back in real life you're not allowed to rent out a house you mortgaged as your primary residence. That's mortgage fraud.you can get a mortgage for a rental property but you usually need to pay off your primary residence first so it can be used as collateral.mortgages and insurance for rental properties are about twice as expensive and much harder to get than for your own house.there are some exceptions to these rules, but you don't know them and can't afford them.
>>61437504basically none of these rules apply if you're a millionaire. But then if you're a millionaire you can afford to follow the rules. So that's moot.the only one that caries potential prison time is the first one. Usually your mortgage paperwork will include a clause stating you can't rent your property out. This is just because if you rent it out they charge you more interest and require much more collateral. So if you lie and rent it out you're defrauding the bank. This can get you in trouble. Not because it's illegal to have room mates, but because it's illegal to lie to the bank about it.
>>61437523>it's illegal to lie to the bank about it.on the flip side if you tell the bank the truth they will double your interest rate and require another home as collateral. Which you don't have.
>>61437528ultimately however OP is right.if you already have one house PAID OFFthen buying additional houses as rental properties is one way to get richor getting someone with a paid off house to put their house up as collateral for your loan, but they'd have to be fools to do that.
>>61437504First of all, u are a fucking retard, i know people who are doing it.Second, I happen to have been living with my mom for the past 10 years and payed off her mortgage baacially and the house is in my name so even in ur retarded world I can still do it3rd, u are a gaslighting retard. Have u been missing out on becoming wealthy beacuse of this belife lol? I dont even know how to spell belife(did i spell that right?) and im less retarded than u. This is why u poors will always be poor
>>61437534No u retard. U dont need a house thats paid off. I did more reserch than chat gtp, not that i needed to as its always right with the new model.. Fucking retards
>>61437536>u are a fucking retard, i know people who are doing it.lots of people do bank fraud, that doesn't necessarily mean you should
Let me guess, u retards are scared of chat gtp cuz it gave u a wrong answer in 2023 so im wrong? Absolute fucking idiots. The way u spout bullshit with such confidence is almost admirable
>>61437538tell your banker what you have planned and see. I already know because I've done it
>>61437539Except its not bank fraud at all and u cant show me one bit of proof that it is. Im in the USA, are u in a different country or something?
>>61437541Forgot pic for u sub 90 iq wits
>>61437542I did and I didnt end up with a retarded banker like u, also why are u talking to a banker and not mortgage broker?
>>61437546>u cant show me one bit of proof that it is.why should I prove it to you? Try it and see what happens. That's what I did.I'm in the US. I've owned 2 houses and an office building. I know the difference between a mortgage and a business loan. You don't.>>61437550>why are u talking to a banker and not mortgage broker?because a mortgage broker will lie to you to get the loan done. A banker isn't going to go to prison so you can make some money. And at the end of the day the banker makes the loan, not the broker.
>>61437559you're unlikely to get caught renting out rooms in your house, that's not the problem. It's illegal, but nobody is going to know you're doing itUNTIL YOU GO IN AND TELL THEM when you apply for the second house. Then you're going to be fucked.
>>61437559also, do you think you're some sort of genius that found an instant money hack?if this was legal everyone that can buy a house would already be doing it. You're retarded, there's people MUCH smarter than you that have tried this and ran into banking laws and mortgage requirements. It doesn't work the way you think it does. If it did everyone would be rich and own 20 houses
Go back to play MONOPOLY board game instead of belittle someone else IQ level and banker and fraud and rules and law.
>>61437523>it's illegal to lie to the bank about itWhat if you switch up your living arrangements down the line?
>>61437597depends on your mortgage, but it's usually going to be illegal to change at any point during the life of the loan.again, everyone does it and you'll never get caught. Unless you do what OP suggests and try to use your illegal rental income to buy a second house.
It's also technically insurance fraud, but how your insurance company would ever find out I don't know.
the alternative is what I already saidyou tell the bank and the insurance company what you're doing and they either double your rates or foreclose on the loan.
the problem is almost all mortgages in the US get special bonuses for people buying a home to live in.and those bonuses don't apply if you rent it out.so you're taking advantage of programs that help people buy homes to live in and then using those programs to start a business instead. This is illegal. The alternative is to tell the bank what you plan on doing, and lose out on those special programs that help people get loans. Which means you're not going to get the loan. Because you don't have the income, down payment, credit, or collateral needed to buy a rental property. You lied and pretended you wanted a home to live in when in reality you wanted to start a business you can't afford.
>>61437621>You lied and pretended you wanted a home to live in when in reality you wanted to start a business you can't afford.none of which is likely to cause problems until you walk into the bank and tell them what you've been doing so you can ask for another loan. The nicest thing they'll do to you is laugh you out of their office. If they're feeling particularly mean they'll report what you're doing to your original mortgage company and you'll lose your house.
>>61437627none of which matters since OP claims to own a house that's paid off already.in that case he can just go in and apply for a mortgage for a rental property, put both houses up as collateral, and get the loan. EZPZthe second house will cost far more than the first, but that's because there's not special discounts when you buy a rental home.
Have fun when the banks sen>>61437636d feral niggers to break in into your house and kill you after 5 years so they can claim back their properties and then mortgage them to some other goyim
>>61437395If you show the bank you are generating income on a property and want another home loan they will give you a loan requiring 25% down and a higher interest rate.If you want more propertys you have to move once per year and buy a new primary residence (rent the rooms if you want). Then after a year turn it into a full blown rental and get a new primary property.With the highest income, best credit score, and proof of running rental profitably you will still have to put down higher down payment and pay a higher interest. You have to keep getting primary home loans if you want to do this.$100k down, 25% rental loan -> $400k property.$100k down, 10% primary multi family -> $1m propertyYou are punished for trying to run a profitable business. The real estate market is not really designed for you to get ahead as is.
>>61437395there's a limit on how many residential mortgages you can hold, after which you need to seek out commercial mortgages which have more stringent down payment requirements. your rental income will likely be scrutinized much more closely with commercial loans.
>>61437431>build equity on like 9 different properties at once>stops being profitable>sell all but your primary residence and the most profitable property>use the money to pay off your primary mortgage>retire
>>61437395my friend did this to an extent. He rented a huge house in the city. rents out all the available rooms. He usually paid very little or no rent.This is how he dealt with bad tenants.every renter had an assigned task. One guy would be responsible for the lawn care (mowing). the 2 downstairs people responsible for the downstairs kitchen and bathroom. a task for all renters. My friend comes of as a very chill "yea whatever man" kinda guy. He tells the renters "yea this is your task, but don't worry about it too much its all a formality blah blah blah".>Now the guy responsible for the lawn care is causing problems. >suddenly the city is receiving complaints about the state of the lawn and overgrown bushes. >Isn't that tenant anon's responsibility? >Dang looks like your evicted!works 100% of the time. I would usually help by calling the city
>>61437568I will and like i said I have a 450k paid off house in my name(not mine but its still in my name) Ill just rent an apartment and do the rental property if what u say us true. Which it isnt
>>61437573Can u show me proof its illegal?>>61437584Why cant anyone come up with proof?>>61437590Show proof>>61437607U might have bigger rates but as long as u can pay off rhe monthly loan..>>61437621Ill make less money? Thats fine..>>61438749Ill do section 8 then.. im sure there are laws making it easy for me>>61438939Ye, I kmow a bunch of people doing it, wasn't illegal rightSomeone show me the fucking proof. Why is it so hard to come up with proof?
>>61438939I would just do all the lawn care and whatnot. Not the dishes though. Only thing im worried about is getting sick often cuz im living with lots of people now. I also got a small dog, I would litteraly have to kill someone if they hurt it. Maybe ill just rent an apartment and rent out the house. I make really good money, I can afford it..
>>61438939I fucking hate living with people though, if I cant move out of there in 12 months and have to stay for a few years then fuck getting rich
>>61437395yeah that's just leveraged investing with 50x more steps
>>61437395There are some places where this is illegal, or where law-mandated loan conditions make it financially bad. But in essence, if you live in a place where this is legal, then yes, this can be an infinite money glitch. The only problem is if there's some wider economy collapse you'll be screwed, but then again, so will be everyone.Also, >>61437421 is right, you might come across niggers. You prepare better but the world sends better niggers. But again, random events "shit got royally fucked" happen in every industry. Before you do this, prepare a plan that if something goes completely wrong, you can somehow at least end up with $0 rather than nothing plus massive debt.
>>61439224What are some examples of how I can do leverage investing? Like car washes or gas stations?
>>61439228Just declare bankrupcy. Also if I just have one house when the economy crashes I make enough money to sustain it. I dont think its going to crash nor house prices go down..
>>61439228Omly thing that can go royally wrong is rhe plumbing and u can rent out rhe right equipment for cheap. Plumbing is the easier thing to do in the world. Worse case a tree root fucks up ue pipe. A Plumbing company will charge u like 15k but u can just rent a small excavator for a few hundred, dig it up and fix it urself. Have to rent welding equipment also I guess. If u have multiple houses then it would make sence to own ur own equipment I guess
>>61439228Can u just not rent to niggers? And by nigger I mean anyone who doesnt pass a background check, I can see if they had evictions
>>61439193>>61439197the assigned task is used to evict people that start to annoy you. "in the fine print"my friend's house was was a good time 80% of the time. He would rent to artists and other interesting people.at one time there was, comic book artist/cartoonist, comedian who worked at a comedy club (free tickets), 1st year nuclear physicist, some guy who painted cars. most of these people were short term rentals (under a year).your interviewing the potential renters just rent to interesting people or someone with skills you might need (car painter)
>>61437395Biggest issue is dealing with property damage/repairs and retards who just stop paying rent. The process of kicking them out is time consuming and expensive sometimes.
>>61439549Im gonna have to get my own fridge cuz I eat exspensive food and will get pissed off if they steal it. How does that usually work? Everyone has their own shelf in the fridge?I probably shouldnt rent to personal freinds huh. I dont mind ruining a freindship by kicking them out if they cant pay..
>>61437395This works best when the whole house is made of concrete and all rooms have a drain in the floor. You just roll through with a pressure washer between tenants and youre g2g.
RE has minted more millionaires than anything else. just be super judgy about who you let rent from you and it will be fine. fast forward 10 years and everything is paid off, a management company is running it all, and you're involvement is tax planning and a few hours a year shopping for insurance while you collect the 30k a month checks. be forwarned, biz is very hostile against plans that actually work.
>>61440301Not to mention the depreciation shit u can use to instantly not pay taxes on ur regular income(u get them back on ur tax returns). That alone is worth enough to be a slum lord.From what I studied getting into section 8 is the easier and has guaranteed tenants. Problem is u have to deal with them so it kind of like a dangerous job..
>>61440301>fast forward 10 years and everything is paid offhow are you going to pay everything off in 10 years? rental properties don't even positively cash flow until years after purchase and putting down 20%
>>61440749>until years after purchase>how are u going to pay everything off in 10 yearsIm sure u are an excpert..
>>61437395mortgages have restrictions on subletting your primary residence
>>61437395I might do this eventually, but for now, I want ONE house paid off so I have somewhere i can live if everything really falls apart, or extra income coming in without leverage. I bought an expensive house but have 3 roommates I live with that pay the mortgage. If I really want to, i can probably pay it off in like 5 years.
>>61437395Bank doesn't give you loans on 6-12 months of rental income. If they've already given you a mortgage, they're not gonna give you another one for at least several years. It's in your credit history that you're paying a mortgage.
>>61441294Yes but it wont fall apart unless there is another coof and there won't be for a while>>61441296Can u please show proof of this statement?
>>61441284Ye, there's ones with low rates, just pay a higher rate and charge more for rent. Do handiwork urself.
Go back to play MONOPOLY board game instead of belittle someone else IQ level and banker and fraud and rules and law. Literally living LIFE in easy mode!
>>61439141again, It's not my job to prove this shit to youI've already done it, I know what happensyou should go try it and seeI guarantee you didn't find an infinite money glitch, it's barely even worth doing. But it can be done. Especially if you already own a house.
>>61441515Go invest in more shitcoins zoomer
>>61437395>Anyone got proof this doesnt work?every house that you see on the market is a proof that this doesn't work in most places, otherwise every house would be owned and rented out
If you already own a house the bank will have you put BOTH HOUSES up as collateral for the business loan, and you WILL get the loan.but you're risking two houses to buy one. And the interest and insurance are about double.
>>61441540>the interest and insurance are about double.forgot taxestaxes on commercial property approach ten times a home in many places.
>>61441535Its not like people are too stupid to look into it and/or cant live with roommates cuz they have kids.. No one wants to deal with tenants even thougg u can safe guard urself with insurance and vet them
>>61441540If it doesnt work out with the 2nd house why can I just sell it? Taxes are not 10 times that, show proof
>>61441268>yeah, let's just pay down the remaining 400k loan with my +$100/ cash flowyou know what would be even better for you? Just pay it off in 1 year, and buy 100 more properties and be a billionaire. Ever thought of that one?
>>61441619No, I would rather just keep borrowing till I die
>>61437395Housing is among the first bubbles to pop during a recession just saying.
>>61441530You don’t need anymore proof to show why it work. It is basically all over the place when you stop being ignorant. But your pea size brain can only function well before you hit 35yo and it eventually go downhill, by the time you realize it you can’t even try to fight the inevitable.
>>61441565>Taxes are not 10 times that, show proofagain, not my job to prove anything to yougo down to your county assessors office and ask them the difference between private and commercial real estate.in my county a house is taxed at 1/10th the rate of a rental because they ignore 90% of a house's value if you live in it.
