196. How to turn a $300,000 house into a $450,000 house, make $100,000 profit per house, turn a $2,000 mortgage with home improvement loan into $450,000 in cash! - Become millionaire within 2 years
This idea is the fastest way to become millionaire in real estate!
Suppose you buy a $300,000 house with 3 big bedrooms for $1,500 mortgage per month.
These are 3 bedrooms, you are going to convert it into 3 housing units. For example, you add a bath or shower to each bedroom and a washing sink and a kings size bed and a luxerious sofa and LED lighting and a toilet and Wifi (internet) and a big OLED/QLED television. This may cost you $10-15,000 max per housing unit. So for a $50,000 home improvement credit over 10 years, you pay another $500 per month. So you total mortgage + home improvement credit is $2,000 per month over 30 years.
Then, they can also use the shared living room, toilet and shared bathroom (with bath) if they like.
So each housing unit, you are going to sell as apartment for $150,000 (so for a $750 per month mortgage they can buy a luxerious apartment)
Go to the notary to split up your house into 3 apartments.
Then, sell each apartment for $150,000. This should bring you $450,000 in cash!
Then you can decide to close the mortgage and take $100,000 in profit ($150,000 * 3 - $300,000 - $50,000), or you keep the $2,000 per month mortgage and keep the $450,000 in cash to invest into another house you split up again into 2-3 apartments. (So then you can easily pay the 20% downpayment for another $300,000 mortgage and $50,000 in home improvement loan)
You can also buy a 2-bedroom $200,000 house with $30,000 home improvement loan and you split it up into 2 apartments you sell for $150,000 each, then you have a $1,300 mortgage (with home improvement loan) and you pocket $300,000 in cash!
So after 2-3 house flipping/split up into apartments, you have over $1 million in cash! It may take only up to 2 years for you to become millionaire!
Check with an attorney to see if this is legal. If you are not allowed to sell the apartments while you have a mortgage, you can rent them out for $1,000 each on the regular market or on AirBnb.com for $50-$100 per day. Then you make $50 per day * 3 apartments * 30 days = $4,500 per month of income - $2,000 - $500 for utilities (water, heating, electricity, Wifi) = $2,000 of profit per month. Or you decide to sell the whole house for $500,000+ (and profit $150,000+) as the revenues are $4,000 per month!
Check with a tax attorney for the potential tax implications!