When we first started, we were willing to do something that the majority of those around were not willing to do.

We rented out our spare rooms (house hacked) to offset our mortgage and help us save more money.

This was our superpower because we were young, we didn’t have kids, and it was the only way we would be able to keep our home, rent it out, and buy again.

But everyone has something that is unique to them. Here are two examples from conversations I’ve had recently.

Veteran Superpower

I ran into an old friend who bought a home with a sub 3% interest rate. He is also a veteran so he was able to buy the property using a VA loan which means he didn’t have to put any money down as a down payment.

Here’s the problem: He knows his family will eventually outgrow the home, but he feels stuck because he doesn’t want to give up his low interest rate.

We briefly talked about his numbers and there is no reason why he should feel stuck. His low interest keeps his borrowing costs down and will allow him to cash flow his property if he were to rent it out.

Because of his superpower, his unique ability as a veteran, he can buy the next house with no money down. He gets the bigger house for his family and keeps an appreciating asset for the long term investment.

There’s more strategies at play for him because he has equity in his home, but I’ll save that for a future conversation.

Not all properties are approved for a VA loan, but this townhouse I have listed right now in Valencia, in the Cheyenne community, is VA approved, FHA approved, and Warrantable. You can see the listing here.

Single + ADU Superpower

I just met with another friend who is looking to buy his first property and has a goal of owning multiple properties. He lives in LA and was looking to move and buy his first home in San Diego.

Here’s the problem: Buying in San Diego is expensive and the house he can afford down there doesn’t allow him to leverage the property in a way to set him up to buy and own multiple properties.

For example, Kelly and I bought a 3 bed/3 bath townhouse in Canyon Country because it was a cheaper part of town and would allow us to maximize our rental income because each tenant would have their own bathroom.

Here’s his superpower: he is single, earns a high income, and is surrounded by family in LA. BONUS, one of his family member owns multiple properties and has experience building out ADUs.

So here was my advice to him: Start local. Buy a property that has ADU potential. Buy a property where you can rent out rooms because that will allow you to save more, faster, to put towards your ADU.

Once the ADU is operational paired with renting out rooms, your saving for your next property. By then, the hope is he could refinance his property to capture a lower rate before moving out.

What’s your superpower?

Some of you are handy, you can buy a home that needs a little work and fix it up yourself. This helps you cut costs and save money. I am the opposite of this power.

Some of you have kids going off to college soon. You could buy a property in their college town. Have their room and board go to an investment that they can manage and rent out the spare bedrooms.

Maybe your superpower is that you have a low interest rate and a ton of equity in your home so you can BUY RENT BUY.

Here’s the takeaway: Everyone has a superpower. You just have to find it.

What is unique about you and your situation that you can leverage in the world of real estate?

Need help finding it? Let’s chat about your situation and your goals.

And that’s a wrap. Thanks for tuning into another week 👋