Dive into this brilliant strategy for building a real estate portfolio (especially if you are in your young twenties without kids and a family to move around!)
To successfully build a real estate portfolio with a minimal down payment strategy, individuals can employ a house-hacking approach that involves purchasing a property with a down payment ranging from 3-5%. Apiring investors can identify target areas with potential for property value appreciation and high rental demand. Seeking fixer-upper properties is integral to this strategy, as it allows investors to leverage their living situation to renovate and improve the property while residing there.
Following the purchase, investors must secure financing for their next property, utilizing low down payment programs such as FHA loans, which often require as little as 3.5% down. The key component of this strategy is living in the property for at least a year to satisfy owner-occupied financing requirements. During this residency, investors can focus on renovations and improvements, thereby enhancing the property's value. After the one-year period, individuals can strategically move to another property, repeating the process to accumulate a diversified real estate portfolio. This iterative approach not only allows investors to take advantage of lower down payment options but also positions them to benefit from potential property appreciation and rental income over time.
