In this video I show you two ways you can live for free in the city. Live for free is when you buy a house with multiple units and the rent from the other units pays for all the costs of home ownership. Mortgage, taxes, utilities, insurance, etc.
Now you’re probably thinking that it’s too good to be true! What’s the catch?
It’s absolutely achievable, I live for free in the city and I help some of my clients do it as well. But the catch is:
1. You will have to have renters in parts of your home, and you will have to manage and deal with tenants
2. If you are renting right now, you will probably need time to build the equity to get into a live for free situation – it took me seven years to make it a reality
3. If you don’t believe that you can do it, and don’t start climbing the property ladder now – you won’t get there.
A property ladder is a simple tool to help you achieve your real estate goals: from just living in your dream home, living for free, replacing your income, or creating passive income to building a legacy for your family.
It is a series of steps where you use the equity you build in each step to get you to the next step on the property ladder. Market appreciation is the big unknown but the great thing is that it only affects the timing, not the outcome. I started my property ladder journey with $10,000 and seven years later I was living for free.
Now I want to show you a couple of examples of how you can live for free in Toronto. Examples of properties I recently purchased for some clients. A Triplex
• purchased for $990,000
• 10% Down – CMHC Loan
• $127,000 with closing costs
• Live in one unit and rent the other
2 • Monthly Cash Flow = $0
• In 5 Years you would build $450K in Equity
• Purchased for $1.1M
• Initially you will need $250,000
• Complicated as you will need interim financing to build the laneway
• Three units in the main house, and you live in the laneway
• Cash Flow $500/month
• After 5 years you will have built $630,000 in Equity ($250K from Property Development)
• And that’s very conservative.
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