Hannah Hammond rents her own home while owning several rental properties that generate cash flow. She argues that with today's high prices and mortgage rates, renting a primary residence can be cheaper than buying, freeing up down payment money to invest in rental properties instead.
Chapters
Is it better to buy a house right now or rent until rates lower? So in my personal opinion, I'm a renter right now, although I own multiple properties that are assets that are cash flowing properties. They're properties that I own and I rent out. So what I decided that I prefer to do is instead of putting that money as a down payment to buy my own house, especially as prices are high, and if I'm going to go buy something that I want to live in, I'm going to be buying something nice, right? I'd rather rent a nice house because a lot of times in this market you can find rentals for cheaper than what your mortgage payment would be if you bought it. If the owner has owned the house for a long time and they have a lot of equity into it, they can afford to rent it to you at a cheaper price. And then instead of putting that money as a down payment to buy your own house, you can use that money to go buy an investment property, add value to that investment property, force appreciation into it, increase the rent, whether it's another single-family home or an Airbnb or a small multifamily property. And that way you can start to use that cash to acquire assets and then rent, which gives you more flexibility to move around, especially if you're younger and you're looking to grow your family or not sure exactly where you're going to be in the next handful of years. So that's what I'm doing right now. Now, owning a house is a luxury. It's really an asset because again, you could take that same money and buy actual assets that are putting money in your pocket every month.
