Start with one property using house hacking. Build equity through appreciation and loan paydown. Use equity to acquire the next property. Repeat. Key strategies include BRRRR method, 1031 exchanges, and conventional investment loans. Key to success: conservative analysis, good management, and patience.
First Property Strategy
House hack: buy a duplex, live in one unit, rent the other. FHA loan with 3.5% down.
Building Equity
Appreciation plus principal paydown creates equity you can tap for the next purchase.
Scaling Methods
Cash-out refinance, HELOC, 1031 exchange, or saving cash flow for next down payment.
Financing
Conventional investment loans require 15-25% down. DSCR loans use property income for qualification.
Management at Scale
Hire a property manager when you reach 5+ units to free your time for acquisition.