Housing Arbitrage

<p>Corey and Rachelle dive into the idea of housing arbitrage in the newest episode of Financial Clarity for Doctors.  If you bought a home or refinanced it at historically low interest rates, you may be able to work that to your advantage in a unique way.</p> <p>The scenario this episode explores involves:</p> <ul><li>A homeowner in a desirable area with a comparatively low monthly cost. <ul><li>Example cost (mortgage, taxes, insurance): $6,000 per month.</li> </ul> </li> <li>Exploring moving to a neighboring town where costs are lower, but want to rent first. <ul><li>Example rental cost: $3,000 per month.</li> </ul> </li> <li>In the meantime, will rent out their existing home (in the desirable area). <ul><li>Example rental income: $6,500 per month.</li> </ul> </li> <li>By doing this, they are generating positive cash flow of $3,500 per month! <ul><li>Lower monthly housing costs for them, and a bit more income than expenses on the home.</li> </ul> </li> <li>This could potentially apply in other situations, where you are considering a move to another city with a lower cost of living as well.</li> </ul> <p>Listen to the full episode to learn more and explore some of the potential risks.  This is not for everyone!</p> <p>For more financial planning tips from Corey and Rachelle, find them on social media! LinkedIn: <a href='https://www.linkedin.com/in/coreyjanoff/'>@CoreyJanoff</a> and<a href='https://www.linkedin.com/in/rachellevanderzanden/'> @RachelleVanderzanden</a>; Instagram:<a href='https://www.instagram.com/coreyjanoff/'> @CoreyJanoff</a> and <a href='https://www.instagram.com/vanderzandenrachelle/'>@VanderzandenRachelle</a>; and Twitter: <a href='https://twitter.com/coreyjanoffcfp'>@CoreyJanoffCFP</a> and<a href='https://twitter.com/rachellefinance'> @RachelleFinance </a></p> <p>Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered