7 Tips you need to know about house hacking

House-Hacking at 22:
7 Tips Before House Hacking

 

HOUSE HACKING

 

When I was 22, my then-fiancé and I purchased our first house. It was a small, raised bungalow style house – about 600 square feet per floor, and it had two apartments in it.

The upper apartment was a one bedroom, living room, big kitchen and full bathroom. The lower unit was a one bedroom with an entry way living room, kitchen, full bath and bedroom.

The house was a great price for us back then. We had to put down 5% and the bank financed the rest. In Ontario, anything financed for more than 80% value requires high ratio insurance, which means the bank is insured if we were to default. We paid for that, of course, and lawyer’s fees as well as land transfer tax, which is a government tax that buyers pay when purchasing land. It’s a percentage calculation based on the value of the property.

So we bought this little house with a great big backyard, and the bottom rental unit was occupied by the seller’s son’s friend. We decided to assume the tenant (meaning, we kept him on).

Here’s some of the tips I learned about buying your first home that you plan to house-hack.

(house-hack: when you purchase a house with intention to rent out or subsidize the costs through tenants while you reside there.)

  1. Assuming tenants that are friends of the seller isn’t always the best bet. Whatever deal they had with the landlord previously does not necessarily continue – like payment arrangements. We had to chase down a few rental payments, which put our payments in jeopardy if we relied on that money.

You also do not have the opportunity to do background checks or credit checks as easily when assuming a tenant, as they already live there and have already “been approved” by the seller. Beware accepting anything sight unseen.

  1. Inspections on the house are only visual-deep. If you have tenants, be sure to ask what the issues are before the inspection. We did not know that there had been water damage in the basement prior to ownership, and as it was well hidden behind drywall not made for a bathroom, it crumbled on us one unsuspecting day.

Tenants are notorious for waiting until the house changes hands and then having a multitude of requests for upgrades and repairs, as the previous landlord and seller may have checked out – aka didn’t care anymore.

  1. Always plan to have enough money to pay the bills, even if your tenants don’t. Especially with property values skyrocketing in most places, you should never buy a property that is above your needs and means. For us, we made sure that we could afford the house without the tenant, but having a tenant meant we were mortgage free.
  1. Check your heating and air conditioning. If it’s all one system, and it’s in the basement, you will need to advise the tenant you need access if there’s ever an issue. Same goes for the electrical panel. Have a saucy tenant? They could turn off your hydro at any time!
  1. The other part of having only one heating system is that what goes in must come out. If one party smokes and the other doesn’t, it will still cycle throughout the house. Even if you have a smoke-free policy, it is very hard to enforce and you may find your part of the house filled with some interesting smells, and that also includes cooking, and anything else that is released into the air, like candles or incense.
  1. Who has access to the backyard? Who has access to the front yard? Our home had a huge backyard that we fenced in for our dog. Some tenants might find that a deal-breaker and want access. Make sure that you check with your tenant before you make major changes.
  1. Designate parking. Even though you own the property, your tenant or roommate might not agree that it entitles you to the main parking spot. That goes for single drives – be sure you can get your car out of the driveway when you need to!

These tips might seem straightforward, but be sure to think about them before you jump into house-hacking. We were young, and it was sometimes a disadvantage when we were looking for tenants because there wasn’t the same amount of respect for a young landlord.

Check into home insurance for renter coverage. Some may require a different insurance when you have tenants under your roof, and some may require that your tenants have their own content insurance, should anything happen.

Also, remember that there are people who count on you to provide them with the roof over their head. That means if anything breaks down (like a furnace or roof), it’s up to you to fix it promptly and safely. Even if they don’t pay rent on time (or at all), it’s a different situation when the necessities of life are being threatened. Be sure you can afford your house and all the bills, plus any repairs.

Lastly, no one cares for your home the way you do. Try to bank that extra money for a while until you have a good nest egg for any surprises that come your way. You’ll be amazed at how much better you can sleep at night when you are ready for anything!

Good luck and happy house hacking!

 

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Click here: MLM & NETWORKING

 

This post may contain affiliate links, meaning, at no additional cost to you, I may earn a small commission if you choose to purchase through these links. Please see my disclosure for more information. Amazon Affiliate Disclosure: I am a participant in the Amazon Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by providing links to Amazon.ca and affiliated sites. 

8 Pet Peeves of Frugality

 

8 Pet Peeves of Frugality

 

FRUGALITY

 

Frugal tips that really bug me 

 

There are a ton of frugal tips out there that are fantastic, and almost as many that really bother me. Here’s my list of things to NOT do, as inevitably, they will come back to us in our cost of living. 

Take condiment packages from restaurants.

 

These restaurants put them out for use with the meals we purchase. If people start taking more than their share, eventually the restaurant will stop providing them, or the prices will go up. This means the condiments will no longer be free to people to use with their meals, as we will pay more. 

 

Share cable or other streaming services with the neighbour.

Don’t get me wrong – I am not the cable police. But services are metered out per household, and when more use is put on one line, it can have an affect on the usage of the area. If your service package says it’s only for your household, then don’t share with neighbours. If you get caught, you may lose your account or even be charged with theft.

 

 

Sign up multiple times for services with different email addresses just to get the free trial over and over. 

 

If the service is good enough that you want to use it regularly, and you go to the trouble of using multiple emails, you may get caught as all emails are coming from the same IP address. Further, you are still creating cost for the company, which in turn causes a higher cost to others. (It’s not like the company will lower their profits, right?) 

 

Reusing stamps that have not been inked.

 

Okay, this one is iffy. The post office is to ink each stamp to show it’s used, and sometimes they miss one or two. Is it ok to remove the stamp and reuse it? You are creating work for someone who has to be paid, and you haven’t paid for that service. That’s not a cool thing to do.

 

Signing up for freebies with multiple emails.

 

I’ve been guilty of this one. If a company is providing free samples, is it fair to sign up for four when three other people could use them and perhaps be customers in the future? Think about if you were in the grocery store. Would you eat four samples just because you were standing there and you were at the front of the line? (Maybe if they were super good, but even then, no!)

 

 

 

Stealing from community gardens.

 

Community gardens are for communities to grow fruits and vegetables, not for the community to feed the community – unless otherwise specified. A community garden is not up for grabs by anyone other than the gardener.

 

 

 

Denting cans or causing damage to packaging for a discount.

 

I’ve seen one too many Simpsons episodes, but dented cans are not usually a discounted item unless they are in a discount bin. Don’t cause damage to packaging in hopes that you might be eligible for a discount on the product.

 

 

Dirty Habits: Not flushing toilets, not washing clothes for multiple times of wear, and worst of all: that you can get more than one day out of socks and underwear.

 

Sometimes cleanliness is worth the extra pennies of being frugal, so please flush those toilets, wash your clothes and change your gitches! 

 

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Click here: https://amzn.to/2NYQJ8F

 

Recommended Reading:

A Beginner’s Guide to RRSPs and TFSAs

31 Ways to Max Out Your TFSA (or IRA)

Save My Rental: What You Need To Know About Tenant Selection 

 

This post may contain affiliate links, meaning, at no additional cost to you, I may earn a small commission if you choose to purchase through these links. Please see my disclosure for more information. Amazon Affiliate Disclosure: I am a participant in the Amazon Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by providing links to Amazon.ca and affiliated sites. 

Passive Marketing Strategies for Direct Sales and MLM Network Marketing Sellers

Passive Marketing Strategies for Direct Sales and MLM Network Marketing Sellers

 

MLMs have a bad reputation, but they don’t need to. Passive marketing takes much of the bad rep out of the name, as it doesn’t involve hard selling. 

 

Passive Marketing Strategies for MLMDirect Sales_Network Marketing Sellers

 

If you haven’t been following my MLM and Direct Sales posts, start here: 

Passive MarketingDirect Sales: How and Why It Could Be Your Best Money Maker

Side Hustle Showdown: Etsy (with MLM/DS book information)

MLM & Network Marketing 

 

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The Hustle

 

So I decided to start selling Avon again. I enjoy their products, and it’s been a couple of years since I sold, so I was running low on my favourite products. I signed up under a friend to restart my business, and picked up some books. 

 

 

Passive Marketing

 

This time around, I am doing things in a more passive manner. If you are looking to grow your business quickly to start making money, and excel at network marketing, I recommend my 30-day book: MLM and Network Marketing. If you want to do it passively, then you will not see money immediately, but you will see growth. 

 

 

Passive Marketing Strategies

 

On Saturday, a neighbour and I held a small yard sale. It was impromptu, and not a lot of signage went into it. I only had yard sale items from the last one I had a year ago, therefore I thought I’d put out the same items and see what happens. 

 

A lot of my items were overstock from Avon, so I knew those who would be interested in my products would likely (about 1 of every 2 people) be interested to know if I still sold Avon. I placed out 6 brochures and some business cards for the taking. 

 

Now, I have also learned there’s the impromptu yard or garage sale, and the there’s the planned one. Since this one was totally impromptu, I didn’t expect a lot of traffic. We sat out for about 3 hours, and sold a bit of stuff. While it wasn’t in the hundreds of dollars, it was still worth my time. After the traffic died down, I packed everything up and donated it to the local Good Will. 

 

Normally, I would have seen enough traffic to see those brochures all go home, but this time I had some left. Here’s what I did next. 

 

I have a bus stop with a shelter on my street, so I packaged the brochures in two bags to help keep them dry, and left two at the bus stop. This stop is a busier one, so I expect that they will find a new home rather quickly, and if I’m lucky, they will be left on the bus for new people as well. 

 

 

Conclusion: 

 

Passive Marketing #1: Wherever you are, leave a few books out for people to see. If they ask to take one home, you may get a deal out of it. 

 

Passive Marketing #2: If you have a public gathering point near your house, like a bus stop, it’s the perfect spot to leave reading material. People are waiting and need something to do other than looking at their phones all day. Sometimes you will luck out and the right person will pick up your brochure for an order. 

 

Alternatively, that could also lead to free advertising on the bus, at the person’s work, or many other places. It can also lead to the garbage or recycling, but that’s a chance you take with passive marketing. 

 

Lastly, you want to look at your demographics. The people that love Avon the most tend to be older people, and people that don’t travel to the stores often. Seniors are perfect examples. Seniors ride the bus because they may not drive anymore, but still need to get around. Taking a bus trip isn’t something they gear up to do often, so the idea of an ordering service would appeal to them. Plus, who doesn’t love the Avon Lady? 😉 

 

Want more about this side hustle? Comment below, and I will continue to post/answer your questions! 

 

Recommended Readings:

Side Hustle Showdown: Amazon Kindle Publishing

Passive Savings Vehicle for Canadians: Mylo

 

This post may contain affiliate links, meaning, at no additional cost to you, I may earn a small commission if you choose to purchase through these links. Please see my disclosure for more information. Amazon Affiliate Disclosure: I am a participant in the Amazon Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by providing links to Amazon.ca and affiliated sites.