Investing in Real Estate
Investing in real estate continues to be a popular vehicle to build wealth. Accumulating properties is often difficult due to the capital required but here’s strategy that can help you build your cash flowing portfolio. Buying an investment property has different conditions than a primary home. For instance, the down payment requirement is often 20% down and the rates are over a percent higher. When you buy a primary, you only have to put 3-5% down, rates are much lower, and you are essentially stating that you plan to live in the home for one year. Then at the one year mark, you can now look for a new primary residence and convert your current home to a rental. With the same capital required to buy 1 investment property, you can acquire 4 properties in 4 years with this strategy. In addition, you’ve locked in much lower rates on all properties during that span to increase your cash flow! If you want to invest in real estate, give us a call to see how you can build your portfolio!