Strategy 48 of 107
Rent out a car, trailer, tools or gear you rarely use
What it is
List idle things with steady demand: a second car, a trailer, a camper, a pressure washer, camera or camping gear.
Steps
- List idle things with steady demand: a second car, a trailer, a camper, a pressure washer, camera or camping gear.
- Use a platform that carries its own insurance; your personal policy usually does not cover renting to others.
- Send the net income to principal each month.
Repeat: Monthly.
Measure: Net monthly income after platform fees, wear and tax.
Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.
Risks
- Wear, damage and theft.
- A personal auto policy may exclude rentals; confirm coverage in writing.
- The income is taxable.
Who it fits
Average household, Single, Married couples, Newlyweds, College students, No high school diploma, No college degree
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 (average household). 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: list idle things with steady demand: a second car, a trailer, a camper, a pressure washer, camera or camping gear.
Suppose it brings $600 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 16 years 3 months instead of 30 years, saving about $196,219 in interest. To finish in five years, they would still need about $3,374 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
- Sharing-economy stack: Small, steady side income from things and skills you already have. Track the net, pay the tax, send the rest to principal.
Sources and more information
- IRS: Gig economy tax center irs.gov
Where to get help
Related strategies
- 47. Amend the last three years of returns for missed deductions and credits
- 49. Pet sitting and boarding from home
- 46. Claim every tax credit you qualify for and send the refund to principal
- 50. Sell baked goods or preserves from your kitchen under your state's cottage food law
- 45. Run childcare and commuting through pre-tax workplace benefits
- 44. Run a licensed family child care home