Turn Your Fear Of Buying A Home Into Tax Free Wealth | David Bach

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David Bach heard a CNBC guest say renting in Brooklyn and investing the difference beats owning. He thinks that math is wrong.

Put $20,000 down on a $100,000 home. It grows 10% and you just made $10,000 on $20,000. That's a 50% return.

Then the tax piece. Sell your own home after two years and the first $250,000 of profit is tax free. Married, it's $500,000.

Bach has done it with a San Francisco home and two in New York.

His first place was a complete dump he bought with his best friend. Every dollar went in, with under six months of expenses saved on a commission only job.

He called his dad, scared he couldn't make the mortgage. His dad said, “Well, son, nothing will motivate you like that.”

His plan is three homes over a lifetime. Rent out two, pay off the third.

Can't afford it? Buy anyway and rent rooms to your friends.

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