Nomad™ and Inflation

Part 7 of Inflation for Real Estate Investors

This series is an EXPANDED VERSION of the new book I just published called Inflation for Real Estate Investors.

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Nomad™ and Inflation

Nomading™ is the sequential buying of owner-occupant properties where you keep the previous property you lived in as a rental.

Annual Paying Subscribers to this substack get access to the Real Estate Financial Planner™ software to be able to change these assumptions to closer match your personal situation.

Email me if you don’t have access to this included perk.

Basically:

• You buy a property as a owner-occupant (like we just did in previous modeling). This is often done with low down or nothing down loans with lower, owner-occupant mortgage interest rates. And, if you’re putting less than 20% down, you’ll likely have PMI.

• You live there for a year. This is a requirement of the lender. Failing to do so is considered loan fraud and has severe consequences (severe like possible prison time severe).

• After you fulfil the obligation of the lender, you then buy another owner-occupant property with little or nothing down (usually 5%) to live in and move into that new property to live there for at least a year.

• You convert the previous property you were living in to a rental after you move out.

• You repeat this process until you reach your financial goals and have the number of rental properties you desire.

By utilizing this strategy you’re able to acquire a portfolio of rental properties with small down payments (or no down payment in some rarer cases) and better, owner-occupant interest rates.

You could buy about 4 times as many properties with the same down payment—instead of needing 20% down for each property, you could buy 4 properties with the same 20% down payment instead.

For more detailed information about the Nomad™ real estate investing strategy, check out Introduction to Nomad™ Real Estate Investing (and other titles) in The Real Estate Investing Mentor series.

What if instead of just buying one owner-occupant property, they decide to Nomad™ and acquire 9 rentals and an owner-occupant property to live in (10 properties total over about 10 years)?

Nomad™ at 3% Inflation

Let’s first start the modeling by comparing just the 3% inflation environment and dig into that then we can look at summaries for how Nomad™ performs in a variety of inflationary environments.