1 00:00:00,080 --> 00:00:02,960 Speaker 1: Welcome to How to Money. I'm Joel and I'm Matt, 2 00:00:03,040 --> 00:00:07,000 Speaker 1: and today we're discussing the massive benefits of house hacking. 3 00:00:25,760 --> 00:00:28,840 Speaker 1: Massive benefits. Indeed, Joel, as we were preparing for this episode, 4 00:00:28,840 --> 00:00:31,560 Speaker 1: I could not help but to think about if Kate 5 00:00:31,560 --> 00:00:33,600 Speaker 1: and I for our first house, if we had house 6 00:00:33,640 --> 00:00:36,559 Speaker 1: act instead of getting a traditional single family house, if 7 00:00:36,560 --> 00:00:38,800 Speaker 1: we had instead maybe gotten a duplex, a triplex, or 8 00:00:38,840 --> 00:00:41,960 Speaker 1: even a quadplex, how different our lives would look. So 9 00:00:42,240 --> 00:00:44,400 Speaker 1: I'm excited to talk through some of the traditional ways 10 00:00:44,440 --> 00:00:46,879 Speaker 1: that you can house ack, maybe some more non traditional, 11 00:00:46,960 --> 00:00:49,040 Speaker 1: maybe some more creative ways that you can house hack 12 00:00:49,240 --> 00:00:51,960 Speaker 1: in this episode. Yeah, and it's easier when you're younger, right, 13 00:00:51,960 --> 00:00:54,720 Speaker 1: if you have house tacked in your twenties, it becomes 14 00:00:54,720 --> 00:00:57,920 Speaker 1: a self fulfilling prophecy. It's just such a great lever 15 00:00:58,000 --> 00:00:59,960 Speaker 1: to pull in wealth building. And so we're gonna be 16 00:01:00,000 --> 00:01:01,560 Speaker 1: it into kind of some of the details how you 17 00:01:01,560 --> 00:01:04,000 Speaker 1: can go about it and who should really be considering 18 00:01:04,000 --> 00:01:06,520 Speaker 1: a house hack in this episode. That's right, Joel. But 19 00:01:06,600 --> 00:01:09,119 Speaker 1: first I have a frugal or cheap for you man. 20 00:01:09,360 --> 00:01:12,080 Speaker 1: Bring it. Yeah, So I had a consumer purchase where 21 00:01:12,120 --> 00:01:15,800 Speaker 1: I was in a situation between buying cheap and affordable 22 00:01:16,240 --> 00:01:20,600 Speaker 1: versus buying something that was maybe more expensive but quality. Specifically, 23 00:01:20,600 --> 00:01:22,959 Speaker 1: for our oldest daughter, we bought her an electric keyboard 24 00:01:23,000 --> 00:01:26,200 Speaker 1: for her birthday. She had shown some interest in keyboards 25 00:01:26,200 --> 00:01:28,360 Speaker 1: and the piano. She was doing some pretty cool stuff 26 00:01:28,360 --> 00:01:29,839 Speaker 1: on the little baby piano, you know, like the little 27 00:01:29,840 --> 00:01:32,080 Speaker 1: toy one that babies kind of pound on with the 28 00:01:32,120 --> 00:01:35,480 Speaker 1: little metal rods. He's like the classic toy piano. Yeah, totally. Well, 29 00:01:35,520 --> 00:01:37,280 Speaker 1: she was like playing some pretty cool music on that, 30 00:01:37,319 --> 00:01:39,920 Speaker 1: and we thought, man, she's totally seems to be into 31 00:01:40,080 --> 00:01:42,440 Speaker 1: playing the keyboard, playing the piano, so we wanted to 32 00:01:42,440 --> 00:01:44,560 Speaker 1: get one for her birthday. But we had to decide 33 00:01:44,640 --> 00:01:47,520 Speaker 1: do we basically buy the cheapest thing that is available, 34 00:01:47,720 --> 00:01:49,360 Speaker 1: or are we going to buy her something that's a 35 00:01:49,400 --> 00:01:51,840 Speaker 1: little higher quality, something that would last for years down 36 00:01:51,840 --> 00:01:54,640 Speaker 1: the road. And I'm afraid that we made the wrong decision. 37 00:01:54,760 --> 00:01:56,640 Speaker 1: Oh you bought the one that's gonna last for a 38 00:01:56,640 --> 00:01:59,720 Speaker 1: long time, didn't you. Unfortunately, man, I think we totally 39 00:01:59,760 --> 00:02:03,360 Speaker 1: fail by buying cheap. This is an instance like basically 40 00:02:03,440 --> 00:02:05,560 Speaker 1: since we've purchased this thing, I've been thinking this over 41 00:02:05,600 --> 00:02:07,320 Speaker 1: and I feel that we should have maybe spent a 42 00:02:07,360 --> 00:02:10,720 Speaker 1: little bit more money. Specifically because we're a musical family. 43 00:02:10,760 --> 00:02:12,919 Speaker 1: It's something that we incorporate into our lives. It's something 44 00:02:12,919 --> 00:02:14,440 Speaker 1: that we want the kids to pursue if they have 45 00:02:14,520 --> 00:02:18,119 Speaker 1: that interest. I could easily see multiple kids getting into 46 00:02:18,160 --> 00:02:21,639 Speaker 1: the piano and having something that's more quality, something that 47 00:02:21,639 --> 00:02:23,600 Speaker 1: they would enjoy more every time that they were to 48 00:02:23,600 --> 00:02:25,320 Speaker 1: play it or use it, and even something that Kate 49 00:02:25,360 --> 00:02:27,320 Speaker 1: and I would appreciate because it just sounds better. Right, 50 00:02:27,360 --> 00:02:30,000 Speaker 1: It's just not nearly as annoying and terrible sounding as 51 00:02:30,120 --> 00:02:32,480 Speaker 1: the cheapest keyboard that we could possibly find, which is 52 00:02:32,480 --> 00:02:34,720 Speaker 1: what we essentially did. We found the most affordable one 53 00:02:34,760 --> 00:02:37,160 Speaker 1: on Amazon. So how do we gone with that nicer version? 54 00:02:37,200 --> 00:02:39,120 Speaker 1: I think it totally would have been worth it. And 55 00:02:39,200 --> 00:02:42,240 Speaker 1: this is an instance where I think we completely failed 56 00:02:42,240 --> 00:02:44,080 Speaker 1: when it comes to frugal or cheap. I think we 57 00:02:44,080 --> 00:02:46,720 Speaker 1: were cheap in this instance. Yeah, man, I've been there before. 58 00:02:46,840 --> 00:02:49,280 Speaker 1: So what was the price disparity between the keyboard that 59 00:02:49,320 --> 00:02:51,520 Speaker 1: you ended up buying and the one that you wish 60 00:02:51,560 --> 00:02:54,000 Speaker 1: you would have bought? Oh well, that's a really good question, man, 61 00:02:54,040 --> 00:02:57,720 Speaker 1: because the difference, no joke, it's like five bucks. Yeah, 62 00:02:57,840 --> 00:02:59,760 Speaker 1: that's a ton of money, right like you you hear 63 00:02:59,800 --> 00:03:01,359 Speaker 1: me say that, and you think, oh, no, maybe I 64 00:03:01,440 --> 00:03:03,959 Speaker 1: think you did make the right decision getting the sixty 65 00:03:03,960 --> 00:03:06,840 Speaker 1: dollar keyboard. I would have also opted for the cheaper 66 00:03:06,880 --> 00:03:09,720 Speaker 1: sixty dollar keyboard for my daughter, right well, that obviously 67 00:03:09,800 --> 00:03:11,799 Speaker 1: was our initial reaction and what we ended up going 68 00:03:11,840 --> 00:03:13,560 Speaker 1: through with. But what we don't know, man, is how 69 00:03:13,680 --> 00:03:16,400 Speaker 1: long that piece of junk is actually going to last. 70 00:03:16,800 --> 00:03:18,880 Speaker 1: We don't know for sure that this is going to 71 00:03:18,960 --> 00:03:21,080 Speaker 1: be something that she's gonna be into for years. But 72 00:03:21,160 --> 00:03:22,760 Speaker 1: we're about to have four kids, and there's a good 73 00:03:22,840 --> 00:03:25,640 Speaker 1: chance that one of them will also be into piano 74 00:03:25,800 --> 00:03:27,840 Speaker 1: or want to play on the keyboard, or something that 75 00:03:27,880 --> 00:03:29,560 Speaker 1: I might get back into. It's been a while since 76 00:03:29,600 --> 00:03:31,800 Speaker 1: I've sat down to the piano on a more consistent basis, 77 00:03:31,840 --> 00:03:34,280 Speaker 1: but you know, that's an option there for me. But 78 00:03:34,360 --> 00:03:36,400 Speaker 1: I think, honestly, one of the biggest mistakes we made 79 00:03:36,440 --> 00:03:38,960 Speaker 1: was to only consider new. We've talked before about how 80 00:03:39,000 --> 00:03:41,360 Speaker 1: you can buy quality products, but you don't necessarily have 81 00:03:41,440 --> 00:03:43,960 Speaker 1: to buy them brand new. We didn't necessarily have to 82 00:03:43,960 --> 00:03:46,840 Speaker 1: make that purchase in the most convenient way possible, which 83 00:03:46,880 --> 00:03:50,960 Speaker 1: is on our phones through Amazon. Because that's the easiest way. Yeah, 84 00:03:51,040 --> 00:03:52,800 Speaker 1: that's a good point. Man. If you had taken a 85 00:03:52,840 --> 00:03:55,080 Speaker 1: little bit of time to research used options, you might 86 00:03:55,080 --> 00:03:57,440 Speaker 1: have been able to find that five dollar keyboard for 87 00:03:57,560 --> 00:03:59,720 Speaker 1: a hundred fifty bucks or a hundred eighty bucks, which 88 00:03:59,720 --> 00:04:02,160 Speaker 1: would be much easier to stomach. Right, Yeah, and then 89 00:04:02,320 --> 00:04:06,000 Speaker 1: you're not paying that crazy, ridiculous five price tag which 90 00:04:06,120 --> 00:04:08,680 Speaker 1: you don't feel like is appropriate for a six year 91 00:04:08,680 --> 00:04:12,000 Speaker 1: old's birthday, which is totally understandable, but you're also buying 92 00:04:12,080 --> 00:04:14,480 Speaker 1: something that you feel like you can use long into 93 00:04:14,520 --> 00:04:17,680 Speaker 1: the future. Man, these are great learning experiences. I feel 94 00:04:17,680 --> 00:04:20,520 Speaker 1: like I've had many of them in my life because I, 95 00:04:20,800 --> 00:04:24,760 Speaker 1: for the longest time, was so bad about prioritizing buying 96 00:04:24,960 --> 00:04:27,640 Speaker 1: the cheapest possible thing and not the thing that I 97 00:04:27,680 --> 00:04:30,760 Speaker 1: would value for the long haul. So yeah, it's always 98 00:04:30,760 --> 00:04:32,960 Speaker 1: good to hear about how we've been able to do 99 00:04:33,000 --> 00:04:35,440 Speaker 1: things well. But sometimes we don't always make the best decision. 100 00:04:35,560 --> 00:04:38,440 Speaker 1: But we can still learn from even cheaping out as 101 00:04:38,480 --> 00:04:41,280 Speaker 1: opposed to go in the smart frugal route. Right. That's right, man, 102 00:04:41,279 --> 00:04:43,320 Speaker 1: We're always trying to learn, always trying to be smarter 103 00:04:43,480 --> 00:04:46,440 Speaker 1: with our money. Let me introduce our beer for this episode, 104 00:04:46,520 --> 00:04:50,560 Speaker 1: we have Mosaic Coyote and this is my Yellowhammer Brewing 105 00:04:50,640 --> 00:04:53,760 Speaker 1: out of Huntsville, Alabama, and this one was donated to 106 00:04:53,920 --> 00:04:57,400 Speaker 1: us by my dad, So thanks so much. Dad. I've 107 00:04:57,400 --> 00:05:00,359 Speaker 1: met that guy. He's a sweetie. Yeah, big thanks to 108 00:05:00,360 --> 00:05:02,880 Speaker 1: Tim for donating this beer to the show. It's super 109 00:05:03,000 --> 00:05:05,440 Speaker 1: kind of you. Yeah. He brought us this crowler while 110 00:05:05,480 --> 00:05:07,600 Speaker 1: he was over there visiting some friends. And I'm excited 111 00:05:07,680 --> 00:05:09,280 Speaker 1: to enjoy this one with you on the show and 112 00:05:09,400 --> 00:05:11,680 Speaker 1: talk about it at the end of the episode. Man, Yeah, 113 00:05:11,760 --> 00:05:14,240 Speaker 1: most definitely all right, But now onto the topic at hand. 114 00:05:14,240 --> 00:05:18,719 Speaker 1: We're talking about the massive benefits of house hacking, and often, Matt, 115 00:05:18,720 --> 00:05:20,840 Speaker 1: the biggest expense we have in our lives is the 116 00:05:20,880 --> 00:05:24,719 Speaker 1: cost of housing. Nothing else really even comes close in 117 00:05:24,760 --> 00:05:28,880 Speaker 1: our monthly budget. Transportation is the second biggest line item 118 00:05:29,000 --> 00:05:31,480 Speaker 1: usually in our budgets, but even that is only about 119 00:05:31,600 --> 00:05:35,520 Speaker 1: half of what the average Americans spends every month on 120 00:05:35,560 --> 00:05:38,559 Speaker 1: their housing costs. So it's important for us to find 121 00:05:38,600 --> 00:05:42,400 Speaker 1: ways to keep our housing expenses down. Any amount saved 122 00:05:42,400 --> 00:05:45,240 Speaker 1: in this category is going to have massive impacts on 123 00:05:45,240 --> 00:05:46,960 Speaker 1: the amount of money that we're able to save and 124 00:05:47,000 --> 00:05:52,359 Speaker 1: invest over time. You could spend hours clipping coupons savings 125 00:05:52,600 --> 00:05:56,320 Speaker 1: on specific items in the grocery store, but that ultimately 126 00:05:56,400 --> 00:05:59,799 Speaker 1: has a pretty small impact. There are just a couple 127 00:06:00,200 --> 00:06:02,600 Speaker 1: of specific line items in your budget where you can 128 00:06:02,640 --> 00:06:05,840 Speaker 1: have big, big winds if you focus hard on them, 129 00:06:06,120 --> 00:06:08,120 Speaker 1: and housing is one of them, and house hacking is 130 00:06:08,160 --> 00:06:10,800 Speaker 1: one of the best potential ways to win in a 131 00:06:10,839 --> 00:06:13,880 Speaker 1: major way when it comes to your housing costs. All right, Jill, 132 00:06:13,920 --> 00:06:15,880 Speaker 1: before we go any further, let's go ahead and put 133 00:06:15,880 --> 00:06:19,120 Speaker 1: a little simple house hacking definition out there, and what 134 00:06:19,240 --> 00:06:21,159 Speaker 1: we're gonna go with for this episode is it's just 135 00:06:21,200 --> 00:06:24,960 Speaker 1: the practice of getting folks tenants right long or short 136 00:06:25,040 --> 00:06:28,400 Speaker 1: term to pay towards your housing costs. It's as simple 137 00:06:28,400 --> 00:06:30,839 Speaker 1: as that. And house hacking it's great because it allows 138 00:06:30,880 --> 00:06:33,600 Speaker 1: you to not only keep your housing expenses low, whether 139 00:06:33,600 --> 00:06:36,200 Speaker 1: we're talking about your mortgage or your monthly rent, but 140 00:06:36,520 --> 00:06:39,200 Speaker 1: you might even be able to live somewhere completely free, 141 00:06:39,400 --> 00:06:41,160 Speaker 1: and honestly, you might even be able to get paid 142 00:06:41,200 --> 00:06:43,880 Speaker 1: to live there. I kind of mentioned that quadplex example. 143 00:06:43,920 --> 00:06:46,679 Speaker 1: If you've got a quadplex, right, and you've got three 144 00:06:47,000 --> 00:06:49,719 Speaker 1: units rented out for let's say seven hundred bucks each, 145 00:06:50,120 --> 00:06:52,880 Speaker 1: you're pulling in twenty one dollars, and it is very 146 00:06:52,960 --> 00:06:56,080 Speaker 1: realistic for you to potentially have a mortgage on that 147 00:06:56,120 --> 00:06:59,040 Speaker 1: property with a monthly payment around six bucks. And so 148 00:06:59,080 --> 00:07:01,600 Speaker 1: you're pulling in five or bucks a month that you're 149 00:07:01,640 --> 00:07:04,719 Speaker 1: being paid to live somewhere. How insane is that? Yeah, 150 00:07:04,800 --> 00:07:06,240 Speaker 1: I mean, I think at the heart of it, that's 151 00:07:06,240 --> 00:07:09,800 Speaker 1: the beauty of house hacking. There is this insane ability 152 00:07:09,920 --> 00:07:13,120 Speaker 1: to either cut your housing costs massively, or live for 153 00:07:13,200 --> 00:07:15,880 Speaker 1: free or even get paid. Like you just said, there's 154 00:07:15,920 --> 00:07:18,000 Speaker 1: really no other thing I can think of in our 155 00:07:18,000 --> 00:07:20,560 Speaker 1: budget that we can kind of flip on its head 156 00:07:20,960 --> 00:07:23,960 Speaker 1: and turn into an area where we basically make money. Yeah. 157 00:07:24,000 --> 00:07:25,880 Speaker 1: You can't do that with groceries or anything, right, No, 158 00:07:26,000 --> 00:07:27,600 Speaker 1: that's impossible. You're not going to get a bunch of 159 00:07:27,600 --> 00:07:30,040 Speaker 1: free food and then in fact, you can eat that 160 00:07:30,080 --> 00:07:32,360 Speaker 1: food while somebody pays you to eat it like that. 161 00:07:32,360 --> 00:07:35,240 Speaker 1: That just doesn't happen unless you're like Kobayashi and you 162 00:07:35,280 --> 00:07:37,080 Speaker 1: can eat fifty hot dogs. But I don't know, but 163 00:07:37,120 --> 00:07:38,680 Speaker 1: you gotta come in first place if you do that. 164 00:07:38,800 --> 00:07:40,400 Speaker 1: That's true. That's true. That's a lot of hot dogs 165 00:07:40,400 --> 00:07:43,720 Speaker 1: to eat. Yeah, So house hacking provides these outside benefits 166 00:07:43,760 --> 00:07:46,480 Speaker 1: that nothing else in your budget can even come close 167 00:07:46,520 --> 00:07:49,120 Speaker 1: to achieving. Another benefit of house hacking is that you 168 00:07:49,120 --> 00:07:51,640 Speaker 1: can start dabbling in being a landlord or investing in 169 00:07:51,680 --> 00:07:55,240 Speaker 1: real estate without it feeling like it's this part time job. 170 00:07:55,640 --> 00:07:57,560 Speaker 1: Just keep in mind that even just a couple of 171 00:07:57,600 --> 00:08:01,040 Speaker 1: hours a week that you'll be investing in to managing 172 00:08:01,040 --> 00:08:04,440 Speaker 1: your tenants and collecting rent and potential fixes you have 173 00:08:04,480 --> 00:08:07,680 Speaker 1: to make to the house, well, it's not necessarily passive 174 00:08:07,760 --> 00:08:10,080 Speaker 1: income that you'll be making with house hacking. That's a 175 00:08:10,520 --> 00:08:12,120 Speaker 1: term that a lot of people like to use when 176 00:08:12,120 --> 00:08:14,800 Speaker 1: it comes to real estate, and I completely understand why 177 00:08:14,800 --> 00:08:17,120 Speaker 1: people use that. Just keep in mind that even a 178 00:08:17,160 --> 00:08:19,760 Speaker 1: couple of hours a week that you might spend by 179 00:08:19,840 --> 00:08:22,920 Speaker 1: collecting rents or fixing up things around the property, well, 180 00:08:22,960 --> 00:08:25,320 Speaker 1: it's not going to feel like passive income. It does 181 00:08:25,360 --> 00:08:28,320 Speaker 1: require work. If you have one house hack, it certainly 182 00:08:28,360 --> 00:08:29,920 Speaker 1: is not going to feel like a part time job, 183 00:08:30,200 --> 00:08:32,120 Speaker 1: but you are going to have to have some margin 184 00:08:32,400 --> 00:08:38,080 Speaker 1: to dedicate to running your side investment property house hack business. Right, Yeah, yeah, totally. 185 00:08:38,200 --> 00:08:40,800 Speaker 1: It does take a little bit of time. But again, 186 00:08:40,840 --> 00:08:43,760 Speaker 1: the benefits, like the massive benefits that you potentially gained 187 00:08:43,800 --> 00:08:47,120 Speaker 1: from house hacking cannot be overstated, like it's just a 188 00:08:47,160 --> 00:08:49,280 Speaker 1: way to have your cake and eat it too. Right, 189 00:08:49,520 --> 00:08:51,439 Speaker 1: if you're looking at traditional housing, you have the sweet 190 00:08:51,480 --> 00:08:54,120 Speaker 1: benefits of having your own place, your own house, while 191 00:08:54,160 --> 00:08:56,880 Speaker 1: at the same time having a significant portion of your 192 00:08:56,880 --> 00:08:59,760 Speaker 1: housing costs covered or even making money in the process. 193 00:08:59,800 --> 00:09:02,320 Speaker 1: It's just fantastic. All right. So we're gonna get into 194 00:09:02,360 --> 00:09:04,760 Speaker 1: what it looks like in some of the specifics how 195 00:09:04,880 --> 00:09:08,360 Speaker 1: you can actually go about implementing a house hacking strategy 196 00:09:08,679 --> 00:09:10,720 Speaker 1: into your life, and we'll get into that right after 197 00:09:10,760 --> 00:09:22,080 Speaker 1: the break. All right, man, we're back from the break. 198 00:09:22,160 --> 00:09:24,839 Speaker 1: Let's go ahead now and talk about what house hacking 199 00:09:24,880 --> 00:09:27,360 Speaker 1: can look like for you. We're gonna talk about some 200 00:09:27,400 --> 00:09:30,480 Speaker 1: of the more typical traditional ways that you can house hack, 201 00:09:30,679 --> 00:09:33,199 Speaker 1: and the first of which includes having roommates. Right, this 202 00:09:33,240 --> 00:09:36,319 Speaker 1: is the easiest and the simplest way. It's a house hack. Uh. 203 00:09:36,360 --> 00:09:38,480 Speaker 1: This is something that we all have probably done at 204 00:09:38,480 --> 00:09:41,040 Speaker 1: some point, whether it be when we're younger, maybe when 205 00:09:41,040 --> 00:09:44,320 Speaker 1: we're kids up through college. Been today's culture, everyone needs 206 00:09:44,360 --> 00:09:46,640 Speaker 1: their own space. Everyone feels like that they need to 207 00:09:46,679 --> 00:09:49,280 Speaker 1: have their own, personalized everything, and this is something that 208 00:09:49,320 --> 00:09:52,000 Speaker 1: we would encourage folks to resist not only from the 209 00:09:52,360 --> 00:09:55,120 Speaker 1: overconsumption sort of standpoint, but because of the benefits that 210 00:09:55,160 --> 00:09:58,640 Speaker 1: you would receive financially, regardless if you own or you rent. 211 00:09:58,960 --> 00:10:01,760 Speaker 1: It doesn't really require extra money or a cash oot 212 00:10:01,840 --> 00:10:06,520 Speaker 1: lay in order to have roommates. It doesn't require money upfront, um. 213 00:10:06,520 --> 00:10:08,760 Speaker 1: It just takes a little bit of flexibility, maybe a 214 00:10:08,760 --> 00:10:11,880 Speaker 1: little bit of lifestyle sacrifice, you know, if if that's 215 00:10:11,880 --> 00:10:13,640 Speaker 1: how you want to think about it, Joel, I don't 216 00:10:13,679 --> 00:10:15,319 Speaker 1: know sure if you noticed I put that sacrifice and 217 00:10:15,400 --> 00:10:17,520 Speaker 1: air quotes because it's not that big of a sacrifice 218 00:10:17,559 --> 00:10:19,960 Speaker 1: to make these small changes in our lives that could 219 00:10:20,000 --> 00:10:22,800 Speaker 1: impact us significantly down the road. Yeah, I agree. I 220 00:10:22,840 --> 00:10:26,040 Speaker 1: think having a roommate is such a massive boon to 221 00:10:26,320 --> 00:10:29,120 Speaker 1: your monthly budget. And this is a way that you 222 00:10:29,200 --> 00:10:31,960 Speaker 1: can do some house hacking, even if you don't own 223 00:10:31,960 --> 00:10:35,080 Speaker 1: a home. Right you can put more people into a space, 224 00:10:35,320 --> 00:10:37,880 Speaker 1: even if it's for a small period of time, and 225 00:10:37,920 --> 00:10:41,200 Speaker 1: that can increase your ability to save. One thing to 226 00:10:41,240 --> 00:10:44,960 Speaker 1: make sure is that your lease agreement is cool with 227 00:10:45,040 --> 00:10:48,160 Speaker 1: you having that many people inside of the space where 228 00:10:48,160 --> 00:10:51,320 Speaker 1: you're living. Certain leases spell out the maximum amount of 229 00:10:51,320 --> 00:10:54,200 Speaker 1: people that can live within the confines of the home, 230 00:10:54,440 --> 00:10:56,160 Speaker 1: and you just want to make sure that you're abiding 231 00:10:56,200 --> 00:10:58,680 Speaker 1: by those terms that you have agreed to. Makes me 232 00:10:58,720 --> 00:11:01,440 Speaker 1: think of my apartment the Athens. We had a little 233 00:11:01,480 --> 00:11:04,400 Speaker 1: too too apartment there in that little apartment complex, and 234 00:11:04,440 --> 00:11:06,800 Speaker 1: everybody that was living there on that little strip, they 235 00:11:06,800 --> 00:11:09,320 Speaker 1: had their own room. All the apartments only had two 236 00:11:09,360 --> 00:11:12,040 Speaker 1: students living in each apartment, but me and my buddies 237 00:11:12,080 --> 00:11:14,320 Speaker 1: we doubled up and we had four guys in there, 238 00:11:14,360 --> 00:11:16,360 Speaker 1: two guys in each room. When with that man, we 239 00:11:16,440 --> 00:11:19,640 Speaker 1: had some massive savings in college for three years because 240 00:11:19,640 --> 00:11:22,079 Speaker 1: we renewed that least, And to be honest, that's probably 241 00:11:22,120 --> 00:11:24,760 Speaker 1: one of the reasons why I still had scholarship money 242 00:11:24,920 --> 00:11:27,000 Speaker 1: left over at the end of school that I was 243 00:11:27,040 --> 00:11:29,480 Speaker 1: able to survive on before I got my first job 244 00:11:29,520 --> 00:11:31,760 Speaker 1: out of college. So even back then, I guess, you know, 245 00:11:31,840 --> 00:11:33,600 Speaker 1: we were both house hacking, but we just called it 246 00:11:33,679 --> 00:11:37,319 Speaker 1: like having a roommate, right, Yeah, new terminology, right for 247 00:11:37,640 --> 00:11:41,200 Speaker 1: a new era, And roommates are probably the easiest way 248 00:11:41,200 --> 00:11:43,680 Speaker 1: for almost anybody to kind of get into house hacking 249 00:11:44,040 --> 00:11:46,120 Speaker 1: a little bit. But the way in which it typically 250 00:11:46,160 --> 00:11:49,320 Speaker 1: makes the most sense for folks is to buy a 251 00:11:49,400 --> 00:11:52,439 Speaker 1: multifamily house and live in one and we're out the 252 00:11:52,480 --> 00:11:55,520 Speaker 1: other units. That is quintessential house hacking right there. Yeah, 253 00:11:55,520 --> 00:11:58,400 Speaker 1: that's the original house hack. Yeah exactly. Yeah, So we 254 00:11:58,520 --> 00:12:01,320 Speaker 1: love it when folks looked a duplex or a triplex 255 00:12:01,400 --> 00:12:04,320 Speaker 1: or a quadplex and then rent out those other units. 256 00:12:04,320 --> 00:12:07,000 Speaker 1: This can massively offset the housing costs that you will 257 00:12:07,040 --> 00:12:10,160 Speaker 1: incur every month, even if that multifamily house is more 258 00:12:10,200 --> 00:12:13,280 Speaker 1: expensive than buying a single family house. Yep, that's true. 259 00:12:13,559 --> 00:12:15,800 Speaker 1: We will say though, it is tougher to land a 260 00:12:15,880 --> 00:12:18,839 Speaker 1: multi family house because most of them are a little 261 00:12:18,840 --> 00:12:21,600 Speaker 1: bit more expensive, and honestly, there's just not as many 262 00:12:21,679 --> 00:12:24,120 Speaker 1: of them on the market as a single family house. 263 00:12:24,200 --> 00:12:27,920 Speaker 1: But with a duplex or a triplex or a whatever plex, 264 00:12:28,080 --> 00:12:31,679 Speaker 1: you're gonna have much more privacy than a roommate situation 265 00:12:32,280 --> 00:12:34,600 Speaker 1: in that you have your own spaces night just your 266 00:12:34,640 --> 00:12:38,079 Speaker 1: bedroom obviously, but living in kitchen areas as well. Yeah, Matt, 267 00:12:38,120 --> 00:12:39,840 Speaker 1: So we mentioned that we both kind of had roommates 268 00:12:39,840 --> 00:12:43,040 Speaker 1: in college, but even after college, I had a roommate 269 00:12:43,080 --> 00:12:45,320 Speaker 1: in the first single family home that I bought, and 270 00:12:45,320 --> 00:12:47,240 Speaker 1: then in the house that we currently live in. It's 271 00:12:47,360 --> 00:12:50,000 Speaker 1: kind of set up like a duplex with just a 272 00:12:50,040 --> 00:12:52,599 Speaker 1: door between both units. And I've mentioned this on the 273 00:12:52,640 --> 00:12:56,080 Speaker 1: show before, lockable door. That's what's important, right, Yeah, keep 274 00:12:56,120 --> 00:12:59,120 Speaker 1: them out right. And so yeah, we rented that out 275 00:12:59,160 --> 00:13:02,240 Speaker 1: to a good friend for like four years, and it 276 00:13:02,760 --> 00:13:06,360 Speaker 1: drastically offset the housing costs that we incurred and allowed 277 00:13:06,440 --> 00:13:08,760 Speaker 1: us to really step up how much money we funneled 278 00:13:08,840 --> 00:13:11,080 Speaker 1: into four oh one case. And I ras there was 279 00:13:11,080 --> 00:13:13,600 Speaker 1: a good bit of privacy involved in that living situation. 280 00:13:13,880 --> 00:13:15,440 Speaker 1: I know at times, like we could hear what she 281 00:13:15,520 --> 00:13:17,160 Speaker 1: was doing back there, and I'm sure she could hear 282 00:13:17,240 --> 00:13:19,720 Speaker 1: us and our screaming children. But yeah, it was definitely 283 00:13:19,800 --> 00:13:22,680 Speaker 1: a lot more private than than having roommates. So if 284 00:13:22,720 --> 00:13:25,719 Speaker 1: privacy is more important to you than house hacking by 285 00:13:25,720 --> 00:13:29,120 Speaker 1: buying a multi family house instead of just bringing roommates 286 00:13:29,200 --> 00:13:31,920 Speaker 1: into the house you're currently living in or into a 287 00:13:31,960 --> 00:13:35,200 Speaker 1: single family home, well then that makes more sense for you. Yeah. 288 00:13:35,200 --> 00:13:38,080 Speaker 1: Another great aspect of having a multi family that you 289 00:13:38,080 --> 00:13:41,600 Speaker 1: can house hack is just the flexibility that it offers you. 290 00:13:41,920 --> 00:13:43,960 Speaker 1: It can really just give you options with what you 291 00:13:43,960 --> 00:13:45,960 Speaker 1: want to do with that property down the road. You 292 00:13:46,000 --> 00:13:48,079 Speaker 1: could move out and continue to rent it as a 293 00:13:48,120 --> 00:13:51,120 Speaker 1: multi family, or you could even take over the entire 294 00:13:51,240 --> 00:13:53,600 Speaker 1: house with a little renovation, right, Yeah, exactly, with a 295 00:13:53,600 --> 00:13:55,199 Speaker 1: little bit of work. Actually had some friends in the 296 00:13:55,240 --> 00:13:57,439 Speaker 1: neighborhood and they had a duplex that was just cut 297 00:13:57,600 --> 00:13:59,839 Speaker 1: right down the middle, like fifty and for a few 298 00:14:00,040 --> 00:14:01,559 Speaker 1: years they lived in one half they rented out the 299 00:14:01,600 --> 00:14:03,800 Speaker 1: other half. But you know what, they decided that they 300 00:14:03,880 --> 00:14:06,320 Speaker 1: love that location. They did not want to move. So 301 00:14:06,400 --> 00:14:08,600 Speaker 1: after that next lease had run its course, they did 302 00:14:08,600 --> 00:14:11,000 Speaker 1: not look for a new tenant and instead they renovated 303 00:14:11,040 --> 00:14:13,400 Speaker 1: that home and it is now a single family home 304 00:14:13,440 --> 00:14:15,760 Speaker 1: that they love that they were able to customize and 305 00:14:15,760 --> 00:14:17,920 Speaker 1: and be exactly like they wanted. But that house ac 306 00:14:18,040 --> 00:14:21,040 Speaker 1: having years of a tenant next door paying towards their 307 00:14:21,040 --> 00:14:24,760 Speaker 1: mortgage gave them the option to even take on that renovation. Yeah, 308 00:14:24,800 --> 00:14:27,160 Speaker 1: it all begins with the house hack sometimes, right, And 309 00:14:27,240 --> 00:14:29,280 Speaker 1: just a couple of technical things that we we should 310 00:14:29,280 --> 00:14:32,880 Speaker 1: really mention with house hacking. Well, a four unit property 311 00:14:33,240 --> 00:14:35,920 Speaker 1: is really the max that you're going to be able 312 00:14:35,960 --> 00:14:39,160 Speaker 1: to jump into unless you're okay with paying cash or 313 00:14:39,200 --> 00:14:43,200 Speaker 1: taking out a commercial loan. Traditional financing is available for 314 00:14:43,320 --> 00:14:46,560 Speaker 1: multifamily units that have up to four separate dwelling units. 315 00:14:46,720 --> 00:14:48,200 Speaker 1: So if you're looking at an a plex or a 316 00:14:48,200 --> 00:14:50,680 Speaker 1: ten plex, well, that's just gonna be much much harder 317 00:14:50,720 --> 00:14:53,440 Speaker 1: for you to take on, mostly because of the financing 318 00:14:53,520 --> 00:14:56,480 Speaker 1: involved with giving that property. Another important thing to mention 319 00:14:56,560 --> 00:14:58,800 Speaker 1: is that Matt and I think it's okay to have 320 00:14:59,000 --> 00:15:01,920 Speaker 1: a smaller down aiment when you're looking to buy a 321 00:15:01,920 --> 00:15:04,800 Speaker 1: house hack. Typically we would recommend when you're buying a 322 00:15:04,800 --> 00:15:08,200 Speaker 1: single family home, is a really good number to shoot 323 00:15:08,200 --> 00:15:10,720 Speaker 1: for for a down payment on that single family home. 324 00:15:11,040 --> 00:15:13,520 Speaker 1: When you're looking to buy a house hack, if you 325 00:15:13,640 --> 00:15:16,520 Speaker 1: only have let's say five percent to put down, well, 326 00:15:16,560 --> 00:15:19,480 Speaker 1: because you're treating that property like an investment and hopefully 327 00:15:19,520 --> 00:15:21,800 Speaker 1: you're planning to hold it for a lot of years, 328 00:15:22,200 --> 00:15:24,760 Speaker 1: well a smaller down payment really isn't the worst idea. 329 00:15:25,000 --> 00:15:27,400 Speaker 1: You're always going to get the best rates in the 330 00:15:27,400 --> 00:15:30,200 Speaker 1: best terms if you have to put down. That's the 331 00:15:30,240 --> 00:15:33,400 Speaker 1: same when it comes to buying a multifamily So ideally 332 00:15:33,440 --> 00:15:35,280 Speaker 1: you would still have that much to put down, But 333 00:15:35,360 --> 00:15:37,840 Speaker 1: if you run the numbers on a multifamily property and 334 00:15:37,920 --> 00:15:40,960 Speaker 1: you can drastically reduce that monthly line item in your 335 00:15:41,000 --> 00:15:43,600 Speaker 1: budget of housing costs by doing a house hack, well, 336 00:15:43,680 --> 00:15:46,440 Speaker 1: having a smaller down payment and taking out alone under 337 00:15:46,480 --> 00:15:50,160 Speaker 1: those terms for that multifamily property, it can still make sense. Yeah, man, 338 00:15:50,200 --> 00:15:52,160 Speaker 1: And while we're talking about homeowns, you're going to get 339 00:15:52,200 --> 00:15:54,560 Speaker 1: a better rates if you're looking to get a mortgage 340 00:15:54,600 --> 00:15:57,280 Speaker 1: on a multi family property that you're going to occupy 341 00:15:57,760 --> 00:15:59,880 Speaker 1: versus the rate that you would get on a pure 342 00:16:00,040 --> 00:16:02,520 Speaker 1: investment property. So that's just a quick check in the 343 00:16:02,560 --> 00:16:06,240 Speaker 1: box for house hacking versus a traditional investment property. And 344 00:16:06,280 --> 00:16:09,960 Speaker 1: another easy way to potentially get into house hacking is 345 00:16:10,120 --> 00:16:14,320 Speaker 1: considering running out your basement or building an accessory dwelling 346 00:16:14,400 --> 00:16:17,280 Speaker 1: unit in your yard. Basements are a really popular way. 347 00:16:17,320 --> 00:16:19,720 Speaker 1: You might have a separate entrance, or you might be 348 00:16:19,760 --> 00:16:21,840 Speaker 1: able to find a way to kind of seal it 349 00:16:21,880 --> 00:16:23,800 Speaker 1: off from the main part of the house for really 350 00:16:23,840 --> 00:16:26,600 Speaker 1: not very much money. In that basement apartment, if you 351 00:16:26,680 --> 00:16:28,600 Speaker 1: do just a couple of tweaks to it, you might 352 00:16:28,640 --> 00:16:30,440 Speaker 1: be able to rent it out for a good bit 353 00:16:30,440 --> 00:16:33,480 Speaker 1: of money. And building an accessory dwelling unit also known 354 00:16:33,480 --> 00:16:35,960 Speaker 1: as like a mother in law suite or a carriage house. 355 00:16:36,200 --> 00:16:39,280 Speaker 1: Well building something like that can be really beneficial. It's 356 00:16:39,360 --> 00:16:42,760 Speaker 1: going to typically require a larger outlay of money, but 357 00:16:42,800 --> 00:16:44,480 Speaker 1: it can also be a way for you to use 358 00:16:44,520 --> 00:16:47,760 Speaker 1: the property you currently own to increase the revenue of 359 00:16:47,800 --> 00:16:51,320 Speaker 1: that property. Yeah, and aside from even building those things yourself, 360 00:16:51,440 --> 00:16:53,440 Speaker 1: if you're looking for a home, just keep an eye 361 00:16:53,480 --> 00:16:56,240 Speaker 1: out for those opportunities to to house hack. Right if 362 00:16:56,280 --> 00:16:58,720 Speaker 1: you see the potential for a basement apartment, or you 363 00:16:58,760 --> 00:17:00,920 Speaker 1: see an unfinished space the of a garage where you 364 00:17:00,960 --> 00:17:03,480 Speaker 1: could completely finish that space out at a little studio 365 00:17:03,480 --> 00:17:06,560 Speaker 1: apartment there, those are are fantastic opportunities for you to 366 00:17:06,920 --> 00:17:09,880 Speaker 1: avoid that massive cash outlay and just spend a little 367 00:17:09,920 --> 00:17:12,280 Speaker 1: bit more money in order to get those spaces up 368 00:17:12,280 --> 00:17:15,160 Speaker 1: to speed and make them comfortable for some tenants. Yeah, Matt, 369 00:17:15,160 --> 00:17:17,359 Speaker 1: a lot of people listening right now might be thinking, 370 00:17:17,720 --> 00:17:20,440 Speaker 1: I've got kids, I've got a family. House hacking. That's 371 00:17:20,440 --> 00:17:22,280 Speaker 1: for the young, or at least the young at heart. Yeah, 372 00:17:22,280 --> 00:17:24,040 Speaker 1: it sounds like something that someone in their mid twenties 373 00:17:24,040 --> 00:17:25,640 Speaker 1: would be happy to do. They're like, oh, yeah, they're 374 00:17:25,640 --> 00:17:27,399 Speaker 1: at home working on their laptop, and it's you know, 375 00:17:27,480 --> 00:17:29,360 Speaker 1: totally fine for you to like have somebody else show 376 00:17:29,400 --> 00:17:31,080 Speaker 1: me up at your house, no problem. Yeah, but I've 377 00:17:31,080 --> 00:17:33,240 Speaker 1: got kids who are gonna be screaming and blah. Blah blah, 378 00:17:33,480 --> 00:17:37,000 Speaker 1: And I completely understand the sentiment. I know from personal 379 00:17:37,000 --> 00:17:39,680 Speaker 1: experience that it's a little bit harder to house hack 380 00:17:39,880 --> 00:17:42,320 Speaker 1: when you have children, but it's not impossible. And I 381 00:17:42,320 --> 00:17:44,359 Speaker 1: think we need to make that clear. You might be 382 00:17:44,560 --> 00:17:46,960 Speaker 1: hearing about this and you might say I'm unwilling to 383 00:17:46,960 --> 00:17:49,479 Speaker 1: do that, and that's okay, but just know that you 384 00:17:49,560 --> 00:17:52,280 Speaker 1: totally can. And so I brought up my example earlier 385 00:17:52,320 --> 00:17:54,160 Speaker 1: Matt of how we had someone living in the back 386 00:17:54,200 --> 00:17:56,200 Speaker 1: of our house. We had kids at the time, two kids, 387 00:17:56,600 --> 00:17:58,560 Speaker 1: and our friend Jillian, who came on the show back 388 00:17:58,600 --> 00:18:00,920 Speaker 1: in the episode eighty two, talked a little bit about 389 00:18:00,920 --> 00:18:04,680 Speaker 1: being newly married with a baby and also having roommates 390 00:18:04,720 --> 00:18:07,400 Speaker 1: where they lived, and basically that one decision while living 391 00:18:07,440 --> 00:18:10,440 Speaker 1: in a high cost area of Washington, d C allowed 392 00:18:10,440 --> 00:18:13,440 Speaker 1: her to save at just a rapid clip. Yeah, that's right, 393 00:18:13,480 --> 00:18:15,160 Speaker 1: and and without money that they were able to save, 394 00:18:15,320 --> 00:18:17,920 Speaker 1: like that's how they paid cash for their first house 395 00:18:17,960 --> 00:18:20,879 Speaker 1: that they purchased in Montana. Yeah, it's not an easy 396 00:18:21,000 --> 00:18:23,040 Speaker 1: choice to make to say I've got a baby and 397 00:18:23,040 --> 00:18:25,000 Speaker 1: I'm newly married and I'm gonna bring in a roommate. 398 00:18:25,200 --> 00:18:28,000 Speaker 1: I understand that that's not for everyone, and even Jillian 399 00:18:28,040 --> 00:18:30,359 Speaker 1: probably wasn't jumping for joy at the idea like who 400 00:18:30,480 --> 00:18:33,120 Speaker 1: roommates this is gonna be fun? That's not necessarily how 401 00:18:33,160 --> 00:18:34,840 Speaker 1: you think about it. That sounds like something that you 402 00:18:34,840 --> 00:18:37,760 Speaker 1: would be saying. Maybe I like hanging out with people, 403 00:18:37,760 --> 00:18:40,080 Speaker 1: and so you know what, Actually we did enjoy having 404 00:18:40,119 --> 00:18:42,200 Speaker 1: someone living in the back of our house. Like there 405 00:18:42,200 --> 00:18:44,159 Speaker 1: were some perks to that too. I feel like there 406 00:18:44,200 --> 00:18:46,639 Speaker 1: was someone there even at times when when we weren't 407 00:18:46,960 --> 00:18:48,639 Speaker 1: or if I was gone for a couple of days, 408 00:18:48,920 --> 00:18:51,480 Speaker 1: my wife didn't feel completely alone with the kids, So 409 00:18:51,560 --> 00:18:53,560 Speaker 1: that was kind of a nice side perk. But yeah, 410 00:18:53,560 --> 00:18:56,720 Speaker 1: I think it's important to mention that it is possible 411 00:18:56,800 --> 00:18:58,840 Speaker 1: to house hack with a family. You might just have 412 00:18:58,920 --> 00:19:02,280 Speaker 1: to kind of change your perspective and find a willingness 413 00:19:02,320 --> 00:19:04,520 Speaker 1: to actually do it. Cool man, So we're gonna talk 414 00:19:04,600 --> 00:19:07,440 Speaker 1: more about some less traditional ways that you can house ac, 415 00:19:07,520 --> 00:19:09,960 Speaker 1: including some ways that you can house ac for folks 416 00:19:10,240 --> 00:19:12,920 Speaker 1: who don't want to actually own property. We're gonna talk 417 00:19:12,960 --> 00:19:23,800 Speaker 1: about that right after the break. M all right, Matt, 418 00:19:23,800 --> 00:19:26,879 Speaker 1: we're back. Let's talk about some less traditional ways of 419 00:19:26,920 --> 00:19:30,240 Speaker 1: thinking about house hacking, their short term house hacking or 420 00:19:30,400 --> 00:19:33,119 Speaker 1: gig hacking. And by the way, I gotta say, I 421 00:19:33,160 --> 00:19:35,680 Speaker 1: feel kind of like a loser saying hacking so much. 422 00:19:36,000 --> 00:19:38,720 Speaker 1: It's just I think it's really just the easiest way 423 00:19:38,840 --> 00:19:42,920 Speaker 1: to convey what we're talking about. Hacking has been this word. 424 00:19:43,280 --> 00:19:46,760 Speaker 1: People talk about hacking everything in life, but house hacking, 425 00:19:47,040 --> 00:19:49,440 Speaker 1: it's just kind of the easiest, quickest way to convey 426 00:19:49,520 --> 00:19:51,439 Speaker 1: what we're talking about. Do you agree? Yeah, but I 427 00:19:51,440 --> 00:19:53,240 Speaker 1: think it's an appropriate term though it makes me think 428 00:19:53,240 --> 00:19:55,480 Speaker 1: of folks who take Ikea furniture and they hack the 429 00:19:55,560 --> 00:19:58,439 Speaker 1: Ikea furniture to make it do something else that it 430 00:19:58,520 --> 00:20:01,520 Speaker 1: wasn't originally designed to do. Right, We're just taking the 431 00:20:01,600 --> 00:20:03,600 Speaker 1: value that you would normally get out of your home, 432 00:20:03,640 --> 00:20:06,159 Speaker 1: that more of that intrinsic value, kind of cranking it 433 00:20:06,240 --> 00:20:08,800 Speaker 1: up to eleven. And when you hit eleven, you also 434 00:20:08,840 --> 00:20:12,120 Speaker 1: get money, so that's a huge win. Yeah, yeah, no doubt. 435 00:20:12,280 --> 00:20:13,960 Speaker 1: And I will say, if any listener out there has 436 00:20:13,960 --> 00:20:15,840 Speaker 1: a better idea for what to call it, police set 437 00:20:15,920 --> 00:20:17,919 Speaker 1: it in if it's less annoying. I'm totally cool with that. 438 00:20:18,080 --> 00:20:20,160 Speaker 1: But for now, house hacking is the best term we've got. 439 00:20:20,440 --> 00:20:23,040 Speaker 1: So there can be creative ways to live in a 440 00:20:23,040 --> 00:20:26,840 Speaker 1: house hacking situation and drastically reduce your rent without the 441 00:20:26,880 --> 00:20:30,080 Speaker 1: long term commitment that comes with a traditional lease. So 442 00:20:30,359 --> 00:20:33,520 Speaker 1: one option out there, especially if you are a renter, 443 00:20:34,119 --> 00:20:36,840 Speaker 1: is to work for your rent. So if you don't 444 00:20:36,840 --> 00:20:38,920 Speaker 1: want to buy your own property and do this house 445 00:20:38,960 --> 00:20:42,119 Speaker 1: hacking thing to the fullest extent, well, you can likely 446 00:20:42,160 --> 00:20:44,880 Speaker 1: find a basement department or a carriage house and get 447 00:20:44,880 --> 00:20:47,640 Speaker 1: a portion or potentially even all of your rent covered 448 00:20:48,000 --> 00:20:50,600 Speaker 1: by taking care of certain tasks that the owner can't 449 00:20:50,680 --> 00:20:53,000 Speaker 1: or doesn't want to do, for instance, like long care 450 00:20:53,160 --> 00:20:55,520 Speaker 1: or house sitting. If you're willing to take on some 451 00:20:55,600 --> 00:20:59,280 Speaker 1: of those extraneous tasks of maintaining the property, you can 452 00:20:59,320 --> 00:21:02,720 Speaker 1: basically vide work value in exchange for rent. I think 453 00:21:02,720 --> 00:21:05,240 Speaker 1: that's really cool. It's outside the box. You might have 454 00:21:05,280 --> 00:21:08,840 Speaker 1: a hard time finding those opportunities, but it could be 455 00:21:08,840 --> 00:21:12,359 Speaker 1: worth pursuing, especially if you have specific skills that you 456 00:21:12,400 --> 00:21:16,440 Speaker 1: feel like can make you valuable. Finding a living situation 457 00:21:16,520 --> 00:21:19,399 Speaker 1: that allows you kind of to barter in that way 458 00:21:19,680 --> 00:21:21,760 Speaker 1: might be a little difficult to find, but if you 459 00:21:21,800 --> 00:21:24,280 Speaker 1: can find something like that, it might be totally worth it. 460 00:21:24,359 --> 00:21:27,119 Speaker 1: And in my opinion, that still is an example and 461 00:21:27,160 --> 00:21:29,240 Speaker 1: a really good one I think of house hacking. Yeah, 462 00:21:29,280 --> 00:21:31,760 Speaker 1: and that's from the renter's standpoint. If you happen to 463 00:21:31,760 --> 00:21:33,800 Speaker 1: be the owner, you can still be in a very 464 00:21:33,840 --> 00:21:37,080 Speaker 1: similar situation and still house hack. You may get paid 465 00:21:37,160 --> 00:21:39,560 Speaker 1: less if you're the one offering the space, but you 466 00:21:39,600 --> 00:21:42,560 Speaker 1: are still utilizing and hacking your house to provide you 467 00:21:42,640 --> 00:21:45,119 Speaker 1: with value. In this case, it's just not value. That 468 00:21:45,280 --> 00:21:48,320 Speaker 1: is money that you can deposit in the bank. All right, Matt. 469 00:21:48,520 --> 00:21:50,520 Speaker 1: A lot of the techniques that we've discussed so far 470 00:21:50,560 --> 00:21:52,520 Speaker 1: when it comes to house hacking, well, they're kind of 471 00:21:52,520 --> 00:21:55,119 Speaker 1: more long term prospects. We're talking about long term buy 472 00:21:55,160 --> 00:21:58,280 Speaker 1: and hold and having long term tenants using your space. 473 00:21:58,640 --> 00:22:01,679 Speaker 1: But another way to make a house hacking is by 474 00:22:01,760 --> 00:22:05,200 Speaker 1: doing short term rentals. There are lots of different sites 475 00:22:05,240 --> 00:22:07,600 Speaker 1: that can help you post your short term rental. Of course, 476 00:22:07,640 --> 00:22:10,600 Speaker 1: the most well known is Airbnb, and on that platform 477 00:22:10,640 --> 00:22:13,520 Speaker 1: you're typically running out on a nightly basis. We're gonna 478 00:22:13,560 --> 00:22:15,840 Speaker 1: talk a whole lot about that in an upcoming episode 479 00:22:15,880 --> 00:22:19,000 Speaker 1: because Matt basically has become an expert pretty quickly in 480 00:22:19,040 --> 00:22:21,800 Speaker 1: that by running out his basement apartment. Yeah, trial by 481 00:22:21,840 --> 00:22:23,960 Speaker 1: fire Man. Yeah, you're right. In the middle of it right. 482 00:22:24,440 --> 00:22:26,520 Speaker 1: Other places where you can list that short term rental 483 00:22:26,600 --> 00:22:30,359 Speaker 1: are your neighborhood Facebook group and sites like zillo. So basically, 484 00:22:30,400 --> 00:22:32,240 Speaker 1: as an owner of a home, you can list either 485 00:22:32,280 --> 00:22:35,000 Speaker 1: a room or the entire house. Just remember it doesn't 486 00:22:35,000 --> 00:22:36,719 Speaker 1: have to be a full time thing. Maybe maybe just 487 00:22:36,760 --> 00:22:38,800 Speaker 1: for part of the year. If you want to travel 488 00:22:38,960 --> 00:22:42,159 Speaker 1: during summer, for example, it could be a good idea 489 00:22:42,240 --> 00:22:45,680 Speaker 1: to list your home for a short term rental. One 490 00:22:45,720 --> 00:22:48,240 Speaker 1: of the benefits of house hacking on a more short 491 00:22:48,359 --> 00:22:50,240 Speaker 1: term basis, like this man, is it just takes the 492 00:22:50,240 --> 00:22:52,719 Speaker 1: pressure off, right, Like, if you don't want to commit 493 00:22:52,840 --> 00:22:55,120 Speaker 1: for a year of of doing something that you may 494 00:22:55,160 --> 00:22:57,040 Speaker 1: not love, you can even try it out for just 495 00:22:57,119 --> 00:23:00,200 Speaker 1: a season or just the summer. Like you mentioned, I'm 496 00:23:00,200 --> 00:23:02,879 Speaker 1: also thinking about holidays. Imagine that you're out of town 497 00:23:03,160 --> 00:23:05,240 Speaker 1: and you have some neighbors who want their family in town, 498 00:23:05,560 --> 00:23:07,760 Speaker 1: and they also want them in the neighborhood. That could 499 00:23:07,800 --> 00:23:09,439 Speaker 1: be a great way to try out house hacking and 500 00:23:09,480 --> 00:23:12,240 Speaker 1: to see if something like Airbnb or even just making 501 00:23:12,240 --> 00:23:15,240 Speaker 1: your place available to your neighbors on a local Facebook group. 502 00:23:15,400 --> 00:23:17,439 Speaker 1: It doesn't have to be something that you're committing to 503 00:23:17,560 --> 00:23:19,520 Speaker 1: for the next ten or twenty years, you can just 504 00:23:19,520 --> 00:23:21,560 Speaker 1: try it out for a week. Yeah, when special events 505 00:23:21,560 --> 00:23:24,520 Speaker 1: happen in your area, you can also do really well 506 00:23:24,640 --> 00:23:27,880 Speaker 1: renting your house out on a short term basis. Then, 507 00:23:28,280 --> 00:23:30,600 Speaker 1: for instance, Matt, the super Bowl was here in January. 508 00:23:30,640 --> 00:23:33,160 Speaker 1: Anybody that was running out a room or their whole 509 00:23:33,160 --> 00:23:36,240 Speaker 1: house while the super Bowl was in town did really, 510 00:23:36,240 --> 00:23:38,760 Speaker 1: really well. They made a good bit of money. Similarly, 511 00:23:39,080 --> 00:23:41,760 Speaker 1: you're from Augusta. Every time the Masters comes into town, 512 00:23:42,160 --> 00:23:44,280 Speaker 1: a lot of people can make sweet money from running 513 00:23:44,280 --> 00:23:47,120 Speaker 1: their places out. Right. Yeah, I'm thinking most folks know 514 00:23:47,560 --> 00:23:49,359 Speaker 1: what the Masters is, but if you haven't heard about it, 515 00:23:49,359 --> 00:23:52,080 Speaker 1: it's this massive golf tournament. And man, it was just 516 00:23:52,119 --> 00:23:55,040 Speaker 1: totally normal for us to rent out our house every 517 00:23:55,119 --> 00:23:57,359 Speaker 1: Master's Week. Growing up in a Gusta, we didn't have 518 00:23:57,440 --> 00:23:59,960 Speaker 1: spring break. Instead, it was just called Masters Week because 519 00:24:00,160 --> 00:24:02,920 Speaker 1: that's when spring break was. Everybody left town because everybody 520 00:24:03,000 --> 00:24:05,760 Speaker 1: rented their house. Obviously, this may not be the norm 521 00:24:05,920 --> 00:24:08,600 Speaker 1: for for you, right and whatever sports event that you 522 00:24:08,680 --> 00:24:11,359 Speaker 1: might have in your town, but that one week of 523 00:24:11,400 --> 00:24:14,160 Speaker 1: running out your house could pay your mortgage for several months, 524 00:24:14,240 --> 00:24:16,439 Speaker 1: if not most of the months of the year. It 525 00:24:16,560 --> 00:24:19,440 Speaker 1: was that big of a deal. So it's yeah, I know, man, 526 00:24:19,520 --> 00:24:21,439 Speaker 1: it's definitely something that you need to consider. And it 527 00:24:21,520 --> 00:24:23,439 Speaker 1: might seem like a one off, right, but when you 528 00:24:23,440 --> 00:24:25,280 Speaker 1: have the potential so only rent your house for a 529 00:24:25,320 --> 00:24:28,040 Speaker 1: single week like that but make a ridiculous amount of money, 530 00:24:28,080 --> 00:24:30,000 Speaker 1: you've got to consider that. And you know, while we're 531 00:24:30,040 --> 00:24:31,680 Speaker 1: talking about the Masters, it makes me think of my 532 00:24:31,720 --> 00:24:35,000 Speaker 1: buddy Ben. He rented out his yard, his front lawn 533 00:24:35,240 --> 00:24:37,879 Speaker 1: during Master's Week because they live pretty close to the 534 00:24:37,920 --> 00:24:40,800 Speaker 1: August of the National the course, and folks would park 535 00:24:40,840 --> 00:24:42,919 Speaker 1: their car in their yard and they would make a 536 00:24:42,960 --> 00:24:45,200 Speaker 1: ton of money. They didn't have to leave to go anywhere. 537 00:24:45,240 --> 00:24:46,760 Speaker 1: They still got to see in their own house, but 538 00:24:46,800 --> 00:24:48,800 Speaker 1: they were able to charge these big time golf fans 539 00:24:48,840 --> 00:24:52,040 Speaker 1: a fair amount in order to park on their lawn. Yeah, 540 00:24:52,119 --> 00:24:55,760 Speaker 1: that's really interesting. Yeah, I love that there are outside 541 00:24:55,760 --> 00:24:58,000 Speaker 1: of the box ways to think about house hacking. It 542 00:24:58,000 --> 00:25:00,879 Speaker 1: doesn't just have to be that true to duplex or 543 00:25:00,920 --> 00:25:04,480 Speaker 1: triplex or quadplex purchase. There are these interesting other ways 544 00:25:04,480 --> 00:25:07,679 Speaker 1: that you can profit from your house other than just 545 00:25:07,840 --> 00:25:11,000 Speaker 1: finding a roommate or having a multifamily property. So one 546 00:25:11,040 --> 00:25:12,680 Speaker 1: of the things I did Matt in the first house 547 00:25:12,720 --> 00:25:14,800 Speaker 1: that Emily and I lived in It had this really 548 00:25:14,880 --> 00:25:17,800 Speaker 1: big basement with pretty tall ceilings, and our friend Pat, 549 00:25:17,840 --> 00:25:19,919 Speaker 1: who's a woodworker, was looking for a space to get 550 00:25:19,960 --> 00:25:23,560 Speaker 1: started kind of a studio for his building projects, and man, 551 00:25:23,600 --> 00:25:26,280 Speaker 1: the basement was the perfect place for him to get started. 552 00:25:26,600 --> 00:25:29,479 Speaker 1: It was really inexpensive. I didn't charge him almost anything, 553 00:25:29,720 --> 00:25:31,280 Speaker 1: and he helped me out by doing a couple of 554 00:25:31,280 --> 00:25:33,920 Speaker 1: things too to improve the basement while he was down there. 555 00:25:34,119 --> 00:25:36,280 Speaker 1: It was really this this win win. Now he's moved on, 556 00:25:36,359 --> 00:25:39,240 Speaker 1: he's got this amazing space and this great company. But 557 00:25:39,480 --> 00:25:41,399 Speaker 1: I like to think of of my basement as his 558 00:25:41,480 --> 00:25:44,040 Speaker 1: humble beginnings where he kind of got the ball rolling 559 00:25:44,040 --> 00:25:45,679 Speaker 1: and get it all started. So that was kind of 560 00:25:45,680 --> 00:25:48,000 Speaker 1: a fun time and really it was just a non 561 00:25:48,000 --> 00:25:50,239 Speaker 1: traditional way to think about house hacking. Yeah. Really, what 562 00:25:50,240 --> 00:25:52,680 Speaker 1: we're trying to get folks to do is to think creatively, right, 563 00:25:52,760 --> 00:25:55,600 Speaker 1: to look to your local opportunities that might come along 564 00:25:55,760 --> 00:25:58,160 Speaker 1: that would allow you to house hack. Being here in Atlanta, 565 00:25:58,240 --> 00:26:00,800 Speaker 1: we have a ton of filming going on. I think 566 00:26:00,800 --> 00:26:03,240 Speaker 1: Atlanta is honestly the top city in the entire country 567 00:26:03,280 --> 00:26:05,280 Speaker 1: when it comes to the movie industry. Yeah, take that, 568 00:26:05,440 --> 00:26:07,640 Speaker 1: l A, Yeah, seriously. I mean, we have fausses all 569 00:26:07,680 --> 00:26:10,000 Speaker 1: around us that are being used for sets that are 570 00:26:10,040 --> 00:26:12,000 Speaker 1: being used to film in where they come in for 571 00:26:12,040 --> 00:26:14,159 Speaker 1: a week, maybe two weeks, maybe three weeks. They put 572 00:26:14,200 --> 00:26:16,760 Speaker 1: down special boards to kind of protect your floors, you know, 573 00:26:16,840 --> 00:26:18,359 Speaker 1: do all the filming that they need to, and then 574 00:26:18,400 --> 00:26:20,520 Speaker 1: they clear all that stuff out of there. They get 575 00:26:20,520 --> 00:26:22,399 Speaker 1: your furniture back in and of sometimes you will get 576 00:26:22,400 --> 00:26:24,280 Speaker 1: a fresh coat of paint as well, because they're basically 577 00:26:24,320 --> 00:26:26,640 Speaker 1: getting it back to perfect condition, back to the way 578 00:26:26,680 --> 00:26:30,320 Speaker 1: it was before they started filming. And maybe not filming specifically, 579 00:26:30,320 --> 00:26:32,600 Speaker 1: but another opportunity man some good friends of ours, their 580 00:26:32,640 --> 00:26:36,040 Speaker 1: house was the green room for a baby who was 581 00:26:36,160 --> 00:26:38,080 Speaker 1: on set. I don't know if the baby was actually 582 00:26:38,280 --> 00:26:40,280 Speaker 1: part of the filming or if it was the baby 583 00:26:40,280 --> 00:26:42,679 Speaker 1: of one of the actors, but their house was the 584 00:26:42,680 --> 00:26:45,240 Speaker 1: green room slash. That's where the baby slept because the 585 00:26:45,240 --> 00:26:47,400 Speaker 1: baby needed to sleep a bunch and they wanted that cool, 586 00:26:47,480 --> 00:26:50,080 Speaker 1: dark house. My assumption is the baby was a child 587 00:26:50,200 --> 00:26:55,359 Speaker 1: star and had extensive contract negotiation to get this specific 588 00:26:55,359 --> 00:26:57,280 Speaker 1: green room. That baby sounds like a little bit of 589 00:26:57,320 --> 00:26:59,399 Speaker 1: a premium down into me. As long as those babies 590 00:26:59,400 --> 00:27:01,919 Speaker 1: are making those blockbuster hits man, they can negotiate all 591 00:27:01,920 --> 00:27:05,720 Speaker 1: they want. Yes, you're right, And so who ultimately should 592 00:27:05,720 --> 00:27:10,040 Speaker 1: consider house hacking, Well, Matt and I would suggest almost everyone. 593 00:27:10,440 --> 00:27:14,080 Speaker 1: Your specific location will likely determine how good a house 594 00:27:14,119 --> 00:27:17,399 Speaker 1: hack could be for you, So run the numbers. House 595 00:27:17,400 --> 00:27:20,760 Speaker 1: hacking can be great, but it isn't always run the 596 00:27:20,840 --> 00:27:23,560 Speaker 1: numbers to make sure that you will make money after 597 00:27:23,600 --> 00:27:27,479 Speaker 1: all the costs monthly mortgage, insurance, taxes, and repairs. Make 598 00:27:27,520 --> 00:27:30,119 Speaker 1: sure to factor wear and tear in as well. And 599 00:27:30,160 --> 00:27:34,000 Speaker 1: if you're going to spend extra time managing this property yourself, 600 00:27:34,359 --> 00:27:36,120 Speaker 1: well that is something else that you need to take 601 00:27:36,160 --> 00:27:39,159 Speaker 1: into consideration. I think ultimately, in this episode, we just 602 00:27:39,200 --> 00:27:42,280 Speaker 1: want to convey that there are a lot of potential 603 00:27:42,320 --> 00:27:45,560 Speaker 1: opportunities for house hacking, some of them outside of the box, 604 00:27:45,680 --> 00:27:48,200 Speaker 1: and many of us just haven't stopped to think about 605 00:27:48,200 --> 00:27:52,080 Speaker 1: it or have initially dismissed the idea as being irrelevant 606 00:27:52,080 --> 00:27:54,800 Speaker 1: to their lives. But as we've mentioned throughout the course 607 00:27:54,800 --> 00:27:57,280 Speaker 1: of the episode, I've experienced it in a few different ways, 608 00:27:57,280 --> 00:27:59,959 Speaker 1: and so has Matt with his Airbnb Underneath the how 609 00:28:00,040 --> 00:28:03,760 Speaker 1: us now we have intentionally tried to incorporate house hacking 610 00:28:03,800 --> 00:28:05,879 Speaker 1: into our lives. It's been a lot of fun and 611 00:28:05,920 --> 00:28:08,399 Speaker 1: it's made a massive difference in our overall monthly budget 612 00:28:08,480 --> 00:28:10,520 Speaker 1: when it comes to housing. It's been one of the 613 00:28:10,560 --> 00:28:13,320 Speaker 1: biggest levels that we've been able to pull on our 614 00:28:13,359 --> 00:28:16,440 Speaker 1: path towards financial independence. Yea Juel. The benefits of house 615 00:28:16,440 --> 00:28:19,880 Speaker 1: hacking can be massive. It can allow you to cut costs, 616 00:28:20,040 --> 00:28:24,080 Speaker 1: save more, and invest an incredible amount of money. I mean, 617 00:28:24,160 --> 00:28:26,959 Speaker 1: like I said, it can completely change the trajectory of 618 00:28:27,040 --> 00:28:30,560 Speaker 1: your life and don't worry about being socially normal, right, 619 00:28:30,800 --> 00:28:32,600 Speaker 1: Like some folks might think it's odd for you to 620 00:28:32,680 --> 00:28:35,000 Speaker 1: have roommates, or they might think it's weird that you 621 00:28:35,040 --> 00:28:37,399 Speaker 1: live in a duplex or that you have an Airbnb 622 00:28:37,640 --> 00:28:39,520 Speaker 1: in your house. I think it's weird that they don't 623 00:28:39,760 --> 00:28:42,280 Speaker 1: exactly because you are going to be reaping the financial 624 00:28:42,280 --> 00:28:45,440 Speaker 1: benefits of your house hack for years to come. Nice. Yeah, 625 00:28:45,520 --> 00:28:47,800 Speaker 1: house hacking it can be a win win for a 626 00:28:47,800 --> 00:28:49,720 Speaker 1: lot of folks out there, all right, Matt, So let's 627 00:28:49,760 --> 00:28:51,160 Speaker 1: get back to the beer that we had on the 628 00:28:51,200 --> 00:28:54,640 Speaker 1: show today. We drank Mosaic Coyote by Yellowhammer Brewing out 629 00:28:54,680 --> 00:28:58,320 Speaker 1: of Huntsville, Alabama. Big thanks to your dad, Tim for 630 00:28:58,360 --> 00:29:00,760 Speaker 1: grabbing a crowler and bringing the one to us to 631 00:29:00,800 --> 00:29:03,880 Speaker 1: share on the show. Matt, what do you think is beer? Yeah? Dad, 632 00:29:03,880 --> 00:29:06,920 Speaker 1: thanks so much for dropping this beer off. Joel Man. 633 00:29:06,920 --> 00:29:10,000 Speaker 1: This beer was super hazy. It had that dry hot 634 00:29:10,120 --> 00:29:12,800 Speaker 1: bite to it, like that bitterness, while at the same 635 00:29:12,800 --> 00:29:14,760 Speaker 1: time it didn't have a whole lot of fruit presents. 636 00:29:14,880 --> 00:29:16,280 Speaker 1: So what that meant for me was that this was 637 00:29:16,400 --> 00:29:19,360 Speaker 1: a sort of dryer tasting or a dryer feeling I 638 00:29:19,520 --> 00:29:22,200 Speaker 1: p A. It definitely lives up to the double dry 639 00:29:22,200 --> 00:29:24,880 Speaker 1: hopped Moniker. Yeah. When I first sipped this beer, the 640 00:29:24,880 --> 00:29:27,360 Speaker 1: first word of the pop in my head was abrasive. 641 00:29:27,760 --> 00:29:30,560 Speaker 1: It was a jarring amount of hops slapping my tongue around, 642 00:29:30,960 --> 00:29:33,680 Speaker 1: And in my mind, that's good. I like a big 643 00:29:33,720 --> 00:29:36,239 Speaker 1: hot punch, a big hop wallop coming out of an 644 00:29:36,280 --> 00:29:38,480 Speaker 1: I p A like this. If you aren't a fan 645 00:29:38,520 --> 00:29:41,040 Speaker 1: of hops, you're not gonna dig this beer. But if 646 00:29:41,080 --> 00:29:44,680 Speaker 1: you like hops and you want to feel them like viscerally, basically, 647 00:29:44,920 --> 00:29:48,240 Speaker 1: this beer is really really tasty and I would recommend 648 00:29:48,280 --> 00:29:50,920 Speaker 1: it to any hopheads out there. This was a really 649 00:29:50,920 --> 00:29:52,680 Speaker 1: tasty beer. Big props to your dad for bringing this 650 00:29:52,680 --> 00:29:55,040 Speaker 1: one aur away. And again, this was a yellow Hammer Brewing. 651 00:29:55,080 --> 00:29:58,240 Speaker 1: So check them out. If you happen to be in Huntsville, Alabama. 652 00:29:58,440 --> 00:30:00,200 Speaker 1: I'm either going there or I'm going to space Camp. 653 00:30:00,240 --> 00:30:02,480 Speaker 1: I'm not sure where. Maybe both. Is that where the 654 00:30:02,560 --> 00:30:05,720 Speaker 1: rocket is next to the Interstate? Oh, I think so. Yeah, 655 00:30:05,920 --> 00:30:07,720 Speaker 1: speaking of space. By the way, Emily and I just 656 00:30:07,760 --> 00:30:12,200 Speaker 1: watched the documentary that c an input out about Apollo eleven. 657 00:30:12,240 --> 00:30:14,280 Speaker 1: It was super interesting. They just had all this old 658 00:30:14,280 --> 00:30:17,640 Speaker 1: footage and kind of like Houston and the astronauts going 659 00:30:17,680 --> 00:30:20,160 Speaker 1: back and forth when Buzz and Neil landed on the Moon. 660 00:30:20,360 --> 00:30:22,400 Speaker 1: If you have Hulu, we have the Hulu with ads, 661 00:30:22,640 --> 00:30:24,880 Speaker 1: you can watch it there. It was really really interesting. 662 00:30:24,920 --> 00:30:27,520 Speaker 1: Just a great documentary to check out. Nice man, I thought. 663 00:30:27,520 --> 00:30:29,840 Speaker 1: I saw that they had that anniversary a few weeks ago. 664 00:30:30,280 --> 00:30:33,480 Speaker 1: I also saw on the Washington monument they projected the 665 00:30:33,840 --> 00:30:35,840 Speaker 1: spaceship and kind of blacked out the rest of it 666 00:30:35,920 --> 00:30:38,360 Speaker 1: so it looks like the rocket the Apollo sitting there 667 00:30:38,480 --> 00:30:41,360 Speaker 1: pointing up for this guy. Super cool. That's awesome, that's 668 00:30:41,360 --> 00:30:44,560 Speaker 1: really cool. Alright, Matt, that's gonna do it for this episode. 669 00:30:44,800 --> 00:30:47,120 Speaker 1: I'm sure there are some folks out there listening right 670 00:30:47,160 --> 00:30:52,080 Speaker 1: now already starting to plan their house hack hopefully. But uh, 671 00:30:52,160 --> 00:30:54,120 Speaker 1: and if you want show notes for this episode, you 672 00:30:54,160 --> 00:30:56,479 Speaker 1: can find those on our website. All you gotta do 673 00:30:56,640 --> 00:30:58,880 Speaker 1: is type how to money dot com into your web 674 00:30:58,920 --> 00:31:01,200 Speaker 1: browser and not on times. At this point we ask 675 00:31:01,280 --> 00:31:03,760 Speaker 1: you to maybe leave us a review, but you know what, instead, 676 00:31:03,840 --> 00:31:06,120 Speaker 1: if you found this episode helpful and you enjoyed it, 677 00:31:06,400 --> 00:31:08,160 Speaker 1: we would ask you to tell a friend about it, 678 00:31:08,240 --> 00:31:10,000 Speaker 1: ask them if they've ever heard of house acking. Maybe 679 00:31:10,040 --> 00:31:12,320 Speaker 1: y'all can strike up a conversation and encourage each other 680 00:31:12,440 --> 00:31:15,320 Speaker 1: both to hop on that house hacking train. All right, 681 00:31:15,400 --> 00:31:18,440 Speaker 1: So that's it, Joel. Until next time, Best Friends Out, 682 00:31:18,520 --> 00:31:19,680 Speaker 1: Best Friends Out.