Housing Arbitrage

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.

The scenario this episode explores involves:

• A homeowner in a desirable area with a comparatively low monthly cost.
  • Example cost (mortgage, taxes, insurance): $6,000 per month.
• Exploring moving to a neighboring town where costs are lower, but want to rent first.
  • Example rental cost: $3,000 per month.
• In the meantime, will rent out their existing home (in the desirable area).
  • Example rental income: $6,500 per month.
• By doing this, they are generating positive cash flow of $3,500 per month!
  • Lower monthly housing costs for them, and a bit more income than expenses on the home.
• This could potentially apply in other situations, where you are considering a move to another city with a lower cost of living as well.

Listen to the full episode to learn more and explore some of the potential risks.  This is not for everyone!

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

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 Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.