BiggerPockets Real Estate Podcast

The Repeatable “Stack” Method to Buy Rentals Faster (and with Less Money)

Feb 3, 2025

Connor Anderson, a former BiggerPockets employee and successful investor from Michigan, shares insights on his innovative "Stack" method for building a real estate portfolio. He discusses how he transformed a $15,000 investment into an eight-property cash-flowing portfolio through house hacking and strategic property purchases. Connor emphasizes the importance of patience in real estate success, exploring financing strategies, market dynamics, and navigating challenges like tenant disputes, all while showcasing the benefits of leveraging equity to expand investments.

38:40

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Episode guests

Connor Anderson

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Quick takeaways

The Stack method allows investors to leverage low-money-down loans to gradually build a diversified rental portfolio over time.

House hacking is a proven strategy for new investors to offset living expenses while generating rental cash flow and wealth.

Deep dives

Hustling into Real Estate

Starting a real estate investment journey can be challenging, but it's possible to build a profitable portfolio even amidst market difficulties. The concept of house hacking is emphasized as an effective way to begin, allowing new investors to offset living costs while generating cash flow. The stack method is introduced, highlighting a strategy that involves progressively purchasing different types of properties over time to scale investments. This method has been successfully employed by individuals like Connor Anderson, who transitioned from a small condo to larger multi-unit properties while maintaining a focus on cash flow and overall upside.

Intro

2min

From Renter to Real Estate Investor

9min

Navigating Real Estate Success

5min

Navigating Real Estate Financing and Investment Strategies

10min

Navigating a Major Renovation While Living on Site

3min

Navigating Real Estate Investment Challenges and Opportunities

3min

Navigating Real Estate Investment Success

8min

One of the most repeatable, scalable ways to build a real estate portfolio is using “The Stack” method. This investing strategy allows you to slowly scale your real estate using low-money-down loans, turning one down payment into multiple properties. It’s one of the smartest, safest ways to build wealth, but it’s almost been forgotten. Today, we’re talking to an investor reviving “The Stack,” using it to build an eight-rental real estate portfolio starting with just $15,000.

Like most investors, Connor Anderson had barely enough money to close on his first house, a condo. He scrounged together just $15,000 to buy his first property and immediately began to rent out the other rooms. But this was just the beginning for Connor.

Over the next few years, Connor slowly turned the rent savings from that one condo into a single-family house, a duplex, and now a fourplex, which he is still house hacking in. The best part? Those properties he used to live in are now cash-flowing rentals WITH equity, which he has used to buy more properties. This is “The Stack” method done the right way, and if you want to safely, slowly, and steadily grow your rental portfolio without a ton of money, this is how to do it.

In This Episode We Cover:

“The Stack” method and how to use it to build a rental portfolio with little money

Why you DON’T need to rush building a real estate portfolio to be successful

One investing area that both Connor and Dave are very bullish on

How Connor scored a zero-dollar-down, off-market duplex

Interest rate buydowns and other strategies to create cash flow in 2025

And So Much More!

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