Building A Portfolio for the Small Investor

One of the most safe and sound Investment in Real Estate especially for one just starting out is the building a portfolio consisting of small properties such as single family residences( SFR )and/or 1-4 unit properties. 

Why invest in Single family homes and small units?

1-Easy To find
2-Large Supply of Homes
3-Easy to manage because everyone is familiar with them
4- Always in demand by renters
5- Easier to finance than larger apartment buildings (5+ units)
6 - In the case of multi unit buildings, you can live in one of the units
7 – You can use the rental income to help to qualify for a purchase loan

Plan

1-Purchase 2 small single family homes with 10% down
2 -Rent them out for 3 years with enough income to cover the mortgage payments, taxes and Insurance PITI
3 -After the third year trade up utilizing a 1031 tax free exchange into more house or a small apartment building
4-After the forth year pull out equity  of $100,000 + per year (6% average appreciation is assumed)

This approach as been used by many of our clients over the years.  For more information on how you can get started call us at (310) 318 -6467