Case Study: How To Become A Real Estate Millionaire
This story is not meant to impress, but rather inspire. To show you that it's possible for a millennial to build wealth through real estate during a period of all-time highs in prices. Was the path perfect? No. Was it easy? no. It took a lot of hard work, belief and living below your means. But this is proof that it can be done and you can do it too. Here's a list of the steps and acquisitions made over the course of several years:
1. Get Your Foot In The Door Property
2016 - Purchased pre-construction condo for $315,000
20% down payment over several years ($63,000)
Rented for $1900/month
2023 Value - $650,000 + Cash Flow Positive
2. Out Of Momma's House Property
2017 - Purchased Principal Residence for $800,000
20% down payment ($200,000)
Monthly Mortgage Cost $2500
2023 Value - $1,200,000
3. Heading Up North Property
2018 - Purchased Vacation Property for $350,000
30% down payment (105,000)
Mortgage Payment - $1,100
Rented for $2500/month
2023 Value - $650,000 + Cash Flow Positive
4. Downtown Rental Property
2021 - Purchased Rental Condo $485,000
30% Down - $145,000
Rented for $2300/month
2023 Value - $600,000 + Cash Flow Positive
5. Moving On Up Property
2021 - Purchased Larger Family Home For $1,500,000
33% Down Payment (500,000)
2023 Value - $1,800,000
{Sold Property #2}.
6. Local Investment Property
2023 - Purchased pre-construction property for (400,000)
100% Downpayment
Rented for $2500/month
2023 Value $600,000 + Cash Flow Positive
In a few years, once all these properties are paid off, I will have a real estate portfolio in excess of $4,000,000 with a gross monthly income of over $9,000/month. This does not account for investments in the stock market/index funds which I recommend to contribute 15% of every pay check towards.
The beauty behind rental properties is that you get paid in 3 ways:
Debt Reduction - Tenant pays for your mortgage and a portion goes towards the principal amount borrowed.
Appreciation - Real estate prices go up historically.
Cash Flow - You get an income every month after all your expenses are paid.
A few lessons I learned along the way to building my multi-million dollar real estate portfolio:
Work hard to grow your income
Pay Cash and Borrow Less
Never Sell, unless you absolutely need to
Fixed Rate = Better Sleep
Always go for the best location, they are recession proof
Buy land
To start building your multi-million dollar real estate portfolio, connect with Andrew Mizzoni through the "Realtor Connect" form.
