The house hack strategy doesn’t always run smoothly. Turning an old home into a modern, rentable masterpiece takes money—especially if you’re doing a big renovation. One of the easiest ways to get the rehab funds you need? A home equity line of credit (HELOC). But, when used incorrectly, a HELOC’s adjustable interest rate can bury any chance you have at cash flowing, no matter how great of a mortgage rate you get.

Welcome back to another Finance Friday episode! This time around, we’re tackling a rental property problem that is plaguing today’s guest, Josh. Josh has made some sound financial moves by having a stable income, a great side hustle, and his newest house hack. But, to maximize this house hack’s return on investment, Josh was forced to expand and convert many portions of his newly bought, hundred-and-fifty-year-old home. This forced his budget to shoot up higher than he was expecting. Now, he’s trying to figure out the best move as he manages his debt spread across his mortgage, a high-interest HELOC, a family loan, and more.

Josh is poised to continue investing in real estate even after this intensive experience. He wants advice from veteran landlords Mindy and Scott on what his next move should be, how he can best capitalize on his remodeled home, and when he might be able to buy the next house hack. If you’re looking to reach financial freedom using real estate like Josh is, this episode is for you!

00:00 Intro
03:27 Income, Expenses, Assets, and Liabilities
06:29 The “Need, Seed, or Greed” Money Story
12:49 The Traveling Nurse House Hack
20:32 Held Hostage by a HELOC
35:13 When to Buy the Next Property?
43:03 Should He Sell the House Hack?
50:05 Action Items

Show Notes at:
https://www.biggerpockets.com/blog/money-359?utm_source=youtube&utm_medium=description&utm_campaign=none
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Grab the BiggerPockets Book on Medium-Term Rentals, “30-Day Stay”:
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How to Use a HELOC to Buy Real Estate:
https://www.biggerpockets.com/blog/heloc-buy-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none
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House Hacking 101—What It Is and How to Get Started:
https://www.biggerpockets.com/real-estate-investing/house-hacking-strategy?utm_source=youtube&utm_medium=description&utm_campaign=none
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How to Renovate a House—Whether You’re Renting, Flipping, or Moving In:
https://www.biggerpockets.com/blog/how-to-renovate-house?utm_source=youtube&utm_medium=description&utm_campaign=none
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Finance Friday: https://www.biggerpockets.com/financereview?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Scott and Mindy on BiggerPockets:
Scott: https://www.biggerpockets.com/users/scotttrench?utm_source=youtube&utm_medium=description&utm_campaign=none
Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 359

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