š§ Is It Better to Put 25% Down and Buy 9 Rental Properties After Buying an Owner-Occupant or Nomadā¢ with 5% Down?
New To Podcast This Week - Over 67,000 Total Downloads*
Everyone knows that it is better to put 25% down to acquire rentals than to put 5% down when buying rentalsā¦ or do they?
In this special podcast episode we analyze whether it is better (faster to financial independence, higher net worth, and riskier) if youāre saving up and putting 25% down versus buying properties with 5% down as a Nomadā¢ and acquiring rentals with far less in down payment.
Should you use the Nomadā¢ 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 flowāor 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 strategiesā25% down payment rentals or 5% down Nomadā¢āwhich will lead to the fastest path to financial independence? Which leads to the highest net worth? Which has the least amount of risk?
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Enjoy!
Love,
James Orr
*As of December 9th, the total number of downloads across all Real Estate Financial Plannerā¢ city-specific real estate investing podcasts for all episodes over all-time is over 67,117.
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