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Updated over 4 years ago on . Most recent reply
![Brian Mackey's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1319503/1663115328-avatar-brianm605.jpg?twic=v1/output=image/crop=656x656@0x33/cover=128x128&v=2)
House Hack Realization...
Hey so I was thinking about something the other day. I currently House Hack, using AirBNB (Yes Covid has disrupted it a bit), but Pre-Covid I was covering the mortgage +1000's. This equates to $2400 a month on average.
I got to thinking, I'm taking in $2400 a month and using it to pay for my mortgage and lifestyle, it's as if I have 12 doors at 200's a piece. If that is the case is it actually even necessary for me to pursue purchasing more real estate? I mean I'm looking all the time at potential deals, that will obviously add to my net worth if purchased properly. But if they only produce 1-200 a door, is it worth all the effort when I've virtually got 12 doors in the form of the house hack?
I hope that makes sense.
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- Rental Property Investor
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@Brian Mackey some very good points have been made. I'd like to add to the equation by factoring in equity growth. On a 30 yr mortgage you pay down roughly 2-3% over the first few years plus, the icing on the cake, appreciation is on average 3-4%. Quick math
Lets look at a 200k home on a 30 year mortgage. Principal paydown of $2,500 and appreciation growth of $6,000 for a grand total of $8,500. So yes those additional properties might only cashflow $2,400 over the year but your net worth is going to grow by close to $11,000!
Cash flow is nice but equity growth is where you truly build wealth.
- Gregory Schwartz
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