Here's the difference between house flipping and house hacking – We Are The Mighty
House flipping versus house hacking. What’s the difference? And how important is it for you to know these terms before you get started?
In this episode of From Military to Millionaire, David Pere breaks it down.
These basics of real estate investing are vital to know before you begin. The terms buy” and “hold real estate” refer to buying rental properties that you can rent right away, so your tenants pay your mortgage. Over time, your property will go up in value, and you’ll get tax advantages. This is a great way to build long-term wealth if you invest in the correct properties.
House flipping is buying a crappy house, fixing it up, and selling it for more than you bought it. You’ll have to have the money upfront to do this, and it’s a lot of work. Wholesaling is where you buy a house very cheaply and then turn around and sell it to an investor or house flipper. You will have to be pretty good at marketing and sales to do this well.
House hacking is when you buy a two-to-four-unit home and rent the units you don’t live in. Your tenants pay your mortgage, and you live rent-free or close to it. One great advantage to house hacking is the money you save in rent costs you can invest elsewhere.
David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No B.S. Guide to Military Life here.
Looking for more ways you can be financially strong? Check out what’s new on our Mighty Money page.
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