Manage episode 302514564 series 2566047
Kari and her wife made some big moves over the past few years. They packed up their stuff and left the San Francisco Bay Area for a relocation in the midwest. Unlike the Bay Area, the Midwest has many affordable housing options with plenty of chances to house hack. So, that’s exactly what the couple did! They bought a duplex in rough condition, put in close to $80,000 of renovations, and now get $900 a month from the side they’re renting out.
Although this renovation allowed them to live for free, it put a $66,000 hole in their pockets, which they recently just paid off. Without much retirement savings or investments in general (save the house hack), Kari is wondering what she can do to maximize the extra $100,000 in after-tax income she and her wife bring in every year.
Should she go the index funds route, buy another rental, or help her wife pursue her dreams by investing in a restaurant? Scott and Mindy give Kari a lot of ideas in this episode, many of which could help you as well!
In This Episode We Cover
Using “strategic debt” to grow your investments and income
Planning your future finances when trying to start a family
Investing in your 401(k), Roth IRA, Self-Directed 401(k), and other investment accounts
Using the “Live in Flip” model to avoid paying capital gain taxes
Why you shouldn’t diversify when you are in a low to moderate net worth category
And So Much More!