Steve A. • April 28, 2019 • Newsletter, Rockstar Content
Last modified: April 29, 2019
Another way to start investing in expensive cities is to look for a nearby less expensive locale (within a 2 hour driving distance). Buy properties from the less expensive locale, renovate, rent it out and then do a cash out refinance. Hopefully, the money you can pull will be greater than the money you have spent on the purchase and renovation. You can then take that cash and repeat the same process until you have a big enough financial nut to buy in the more expensive city.
I know someone who employed the above strategy and was able to go from zero to 30+ properties within the past 10 years.
I wrote a post about it here: https://www.sportofmoney.com/how-one-person-built-a-real-estate-empire-with-little-money-to-start/
I thought about going in on a house with a few friends a 2-3 years back but decided it might get too complicated should we have any challenges, particularly if someone runs into unexpected financial strain and needs their equity. I ultimately took a cop-out and have been buying medical office buildings through a REIT. Return isn’t as high but a little less headache. Cheers!
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