BREAK INTO THE MARKET, WHERE TO START.

My first ever real house hack

I thought this house was going to end my life back in 2015. I've grown so much since then

Looking back to when I first dipped my toes into this field, it feels like a thrilling adventure! What started as a simple hobby quickly transformed into a passion. I found immense joy in tearing down the old and breathing new life into spaces. Admittedly, I might have gone a bit overboard with the renovations in my house, but it was all part of the journey. At that time, the Kamloops market was just beginning to take off, and I must say, the surge in property values turned out to be a lifesaver for me. But it wasn't all luck; I made sure to surround myself with the right professionals and took bold steps forward. Each decision was a leap into the unknown, and it made the experience all the more exhilarating!

When I bought the home, there was a tenant in the basement living in a two-bedroom suite. She had been there for a while, and her rent was significantly below market value. She agreed to leave, and eventually, she did. I found a new tenant and got lucky—they were great. I was also able to nearly triple the rent!

I worked in the oilfields, mainly in Alberta at the time. The work was seasonal, which was convenient because it allowed me periods of time off to focus on renovations. I had some background experience from working construction jobs like framing, exterior finishing, and concrete. I was exposed to the trades and understood the processes. Even with that background, it was a challenge, and I spent a lot of time watching YouTube videos to acquire new skills. I tried things, messed them up, and redid them, but I got it done. Of course, I began to hire out much more of the work as I continued, and today my goal is not to be on the tools at all. At heart, I still love to get my hands dirty, but I am running a business now, which requires a different skill set. It's important to be smart about what you're doing. Don't mess with electrical or plumbing. There are videos out there that can guide you, but be prepared to pay for those trades. This blog isn't about that, though. It's for people trying to get started.

I didn't have much money in my bank account back then, and I'd be in trouble today if I was that low on cash! But I pushed forward when I could and held off when I needed to. I think I worked on that first house for two years before I sold it complete. I could have done it much faster if I knew then what I know now. If I had asked for more help or partnered with someone for financial support. I was afraid of letting anyone in back then, and I didn't really understand this business. I didn't have any assets to leverage yet, and honestly, I didn't truly believe in it yet. I hadn't received my first paycheck. Fast forward to that day... I still have the photo of me with my first $140,000 check. I walked out of the lawyer's office with it and felt on top of the world going to the bank. I'll blog again about what I did with that money and how I reinvested it. The market helped me a lot as it was rising, but honestly, I could do that again in today's market easily with my skill set. I know how and what to renovate, how to save money, and how not to use my own money at all. Most importantly, I know when to use leverage.

I'll write more blogs about questions I often get from people like "How did you get the money?" and "I went to the bank and they said no, how did you get it?" or "Where did you learn all the renovation skills?"

At the end of the day, the best way to get started and build some wealth is through forced appreciation. Remember "forced appreciation." Your goal is to acquire an asset that is eligible for improvements, like adding a basement suite, or perhaps already has a suite, so you can have a mortgage helper during your renovations. Then, improve the asset over time. You'll create equity in the asset, and then you can sell and pay taxes to the CRA or leverage and give less money to the bank and roll into the next asset.

Either way, a very good strategy is to get a property that is suited or can be suited easily and take advantage of the rental income to help support you. House hacking is the way in.

Hope this helps someone out there