Is It Better to Put 25% Down and Buy 9 Rental Properties After Buying an Owner-Occupant or Nomad™ with 5% Down?
Manage episode 388353723 series 3363670
Should you use the Nomad™ strategy to acquire properties with a minimal 5% down payment as quickly as possible? Or is it better to be a little more patient and save up for full 25% down payments and buy rentals without moving into each?
By saving up for a 25% down payment, the properties will cash flow better. That may allow you to save up faster for subsequent properties and maybe... just maybe... ultimately be able to buy properties faster.
If you're buying properties with a 5% down payment, there's a chance they could have negative cash flow—or what we often refer to as deferred down payment. Deferred down payments mean that it is slower to save up for the next property purchase. This could ultimately slow down how fast you can acquire properties.
Of these two strategies—25% down payment rentals or 5% down Nomad™—which will lead to the fastest path to financial independence? Which leads to the highest net worth? Which has the least amount of risk?
Check out the video and interactive charts from this class here:
https://RealEstateFinancialPlanner.com/model/nomad-versus-25-down-payment/
Or, see Sparks specific, detailed analysis of a variety of strategies here:
https://RealEstateFinancialPlanner.com/model/NV/Sparks/
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sparks real estate investor podcast? Book a free consultation to discuss.
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