321 | Discovering the Power of FU Money

Financing

Zach and Marilyn explore various property financing strategies, balancing between paying in cash and securing financing. They aim to save around $75,000 for their next property, considering both market appreciation and risk management. Jonathan Mendosa emphasizes the importance of diversification to mitigate risks while ensuring better returns than a checking account 1. Zach mentions the possibility of using a self-directed IRA for real estate investments, highlighting the complexity of such decisions 2.

We need to find that blend that gives us a better return than our checking account but doesn't expose us to as much risk as dogecoin.

--- Jonathan Mendosa

Balancing these factors is crucial for their financial strategy.

   

House Hacking

House hacking has been a significant part of Zach and Marilyn's financial journey. They transitioned from a live-in flip approach to renting out their basement, which now covers their mortgage and utility bills. Marilyn explains how they leveraged their good credit to secure a low-interest mortgage, making the numbers work in their favor 3.

Our mortgage right now is $1,000 a month, and the people who live below us pay us $1,100 a month.

--- Zach

This strategy has provided them with financial stability and additional income.

   

Real Estate

Zach and Marilyn's real estate decisions have significantly impacted their financial independence. They sold their previous home for a profit and invested in their current property, which has appreciated in value. Brad Barrett highlights the importance of evaluating opportunity costs and ensuring that investments align with their financial goals 4.

We could turn around and sell it right now for $350,000 without batting an eye.

--- Zach

Their strategic approach to real estate continues to yield positive results.