Every once and a while you come across one of those stories that just epitomizes a notion or concept that hits home. A recent story on Business Insider chronicles a young Atlanta couple in their 20’s who are successfully using real estate investing to not only pay down their 6-figure student loans, but live the lifestyle of their choosing. The article says that instead of working to pay down the debt as soon as possible, they decided to buy assets that would generate cash flow and pay for the debt with the passive income. They started with house-hacking a duplex. Yes, indeed….
“Our first decision was to buy a duplex. Our housing expenses prior to owning the duplex were $1,350,” Shawn said. “After buying the duplex and living on one side while we rented out the other side, we used the tenant’s rent from their side, $1,225, to pay for the entire mortgage, $990 (and some utilities with the money that was left over). This enabled us to live in the duplex without having to pay for the mortgage out-of-pocket and saved us the $1,350 in housing expenses that we had prior to buying the duplex.”