How I Bought This House For $0 | My Worst Financial Decision

About a year ago I watched a video on YouTube about “ How I bought this Home for $0“ by this finance YouTuber called Graham Stephen. The answer was, via it being a duplex and getting Rental income, and some savvy Math, he was able to basically live for FREE.

I wanted that to, and today I have a $0 dollar home, but it’s the worst financial decision I have ever made. The Mortgage is $0, PMI $0, Property Taxes $0 and there is no house hacking. In this video I’m going to break it down. In the course I just launch I teach this also, link down below.

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1. How this House is $0 without house hacking

Usually Youtuber, buy undervalued homes, house hack, deduct the interest, refinance and get their money out ( and the tenants pay, and that’s how its $0)

But for me I wanted to do it different, because I grew Poor, No help and the first time I head about FF I was 19. I was going very fast and making a lot of money. But then I stopped.

You ever Heard this Quote, “ Stop While You’re Ahead, all great gablers Do”. I was gambling and I stopped just in time. I stopped borrowing money and my plans changed

Here are the Details to How I did it:

I saved up a lot of money over the pat 5 years

I moved to Puerto Rico which has different laws than the Main Land but its basically the same

I paid Cash for this House $130,000, I can remodel for 35k but because I want a few extra things its going to 50k total. That means I’m the property for 180k.

How its 0$

Well no Mortgage 0$

No property taxes because I’m exempt, because its my first property ( forever basically )

And Insurnance I don’t have to get but you know what they about people that don’t get insurance ( its stupid , so I’ll probably pay $150-200 a month )

2. How is it the Worst Investment Ever you Made

Its exactly what I wanted

But I know it’s a terrible investment

But….. I don’t care ( another power quote that changed my life was this “ You have to decide if you want to be Right or if you Want to be Happy )

Mathematically Here is the Problem:

A 30 years Mortgage on this Property with 20% down would have been $872 per month, if I invested the remaining $144,000 at 12% for 30 years I would have made 4.3M dollars

If I deduct the 103k interest I would have paid: I still have literally 4.1M

But because I paid Cash for this Property and Lets my Home appreciates at 5%, in 30 years we’re looking at $777k it might be worth

So if I know this:

Why don’t I just Finance the Property after its fully remodel and invest the money

Call it a day

3. Here is the Unpopular Answer but it’s the Truth

In my course I teach the 4 financial freedom steps

Debt Free, Foundation step, wealth Building and then Finally Freedom

SO the Reason is: the way you want to play the finance again, is to make sure that for your plan to work, not everything has to go as plan ( and by doing this, its mean exactly that )

For example:

I have No Debt ( Free Cashflow )

Emergency Fund for 6 month ( security )

I have an investment account that I invest 20% of my income into, and also a Paid of Home ( in 30 years that investment account will have 16m and in 50 years it’ll have 156M)

So although I’ll lose 4M, I don’t really care, because I get to Enjoy myself a lot sooner and have a lot less to worry about ( plus 16M or 21M, its still millions of dollars )

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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