Mortgage Killer Accelerator

Strategy 37 of 107

Rent the whole home for a big local event week

Depends on people or program rulesFrom new cash flow, not your paycheck

What it is

Mark the dates when hotels near you sell out: a major golf tournament, a college graduation or football weekend, a festival or a race.

Steps

  1. Mark the dates when hotels near you sell out: a major golf tournament, a college graduation or football weekend, a festival or a race.
  2. Rent the home for that week at the going rate, and stay with family or travel.
  3. Lived in as your home and rented 14 days or fewer in the year, the rent is generally not reported for tax. Send it all to principal.

Repeat: Every year the event returns.

Measure: Rent for the event week (enter as a yearly amount).

Try it in the calculator Enter its amount in "Yearly amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Local short-term rental rules, permits and HOA bans.
  • Damage and cancellations; use a deposit and written terms.
  • Over 14 days in the year, the income is taxable.

Who it fits

Married couples, Single, Grandmas and grandpas (62 and over), Average household, Newlyweds, Higher earners

Needs

Any homeowner with a mortgage.

How predictable

Depends on people or program rules (tenants, family, IRS records, lenders)

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (married couples). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: mark the dates when hotels near you sell out: a major golf tournament, a college graduation or football weekend, a festival or a race.

Suppose it brings $6,000 once a year on principal. The loan would be paid off in 17 years 11 months instead of 30 years, saving about $173,949 in interest. To finish in five years, they would still need about $3,488 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sequences that use it

  • Income from the home stack: Work the home already supports: child care, paid care for a relative who lives with you, and one big event week a year.

Sources and more information

Where to get help

Related strategies

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