Don’t have a ton of money to invest in rental properties? No problem! You don’t need hundreds of thousands of dollars to start building wealth. Chris Young, a (not-so) rookie investor from Southern California, started with just five percent down. He bought a $500,000 home in pricey Los Angeles for just $25,000 out-of-pocket. Now, Chris has four rental properties, one of which he uses as a vacation home, and hundreds of thousands in equity! Plus, he did it all while working a W2!
Chris knew he wanted to invest in real estate early on. So, when he started his full-time job, he also got his real estate agent license, allowing him to have a backup source of income in case his career didn’t work out. But, thankfully, his real estate has been doing more than alright! He performed a “live-in BRRRR” (buy, rehab, rent, refinance, repeat) on his first property, making him hundreds of thousands in equity, then bought another one!
But, after attending BPCon, Chris knew he needed a true investment property. What gets you monthly cash flow and a vacation home to use whenever you want? A short-term rental! But not everything went as planned—one unlucky event put his entire house out of commission for months! However, Chris is still thrilled that he has bought this property. He shares why he picked its specific market, how he dodged local competition, and did it all with just ten percent down!
In This Episode We Cover:
How to start building your real estate portfolio with just five percent down!
The “live-in BRRRR” strategy that made Chris hundreds of thousands of dollars
Picking your vacation rental market and why you DON’T want to go where everyone else is
Using a ten percent down second home loan to buy your first short-term rental
The one very unlucky event that cost Chris $40,000 (you CAN’T avoid it!)
And So Much More!
Links from the Show
Ashley's BiggerPockets Profile
Tony's BiggerPokckets Profile
Join BiggerPockets for FREE
Real Estate Rookie Facebook Group
Real Estate Rookie YouTube
Grab the Book, “Short-Term Rental, Long-Term Wealth”
Find Investor-Friendly Lenders
Real Estate Rookie 486 - Quitting His Job with Real Estate After Cracking the Cash Flow Code w/Miller McSwain
Connect with Chris
(00:00) Intro
(02:24) 5% Down First Property
(06:57) Property 2 (Rent-by-Room)
(11:04) Finding 1st Short-Term Rental
(19:36) 10% Down Sequoia Vacation Rental
(29:26) Losing $40K!
(30:01) Setting Yourself Apart
(39:44) Connect with Chris!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-498
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Real Estate Rookie