Since a lot of people asked me how does one exactly afford the downpayments for all these homes, I’d thought I’d break down roughly how my wife and I turned 1 house into 6.
https://twitter.com/rohindhar/status/1450502464935845888
(Note: this is somewhat simplified and not the exact timing of how things worked, but in retrospect, yes how things worked)
Started with house number 1. Paid 20% down plus modest renovation costs.
We saved all the cashflows (see thread below) over the years and “cash-out” refinanced property #1 when interest rates fell. That’s pretty much the whole story!
https://twitter.com/rohindhar/status/1445459041757532165
The savings from the cashflow + the refi proceeds covered *all* of the down payments on the next 5 properties and *almost all* of the renovation costs as well.
That's really the extent of the story.
Started with one good deal. Didn’t touch the cashflows so we could reinvest them. Waited till we had a track record that showed up on our tax returns so we could refinance.
Since interest rates had fallen and we had paid off a decent amount of the principal, refinancing didn’t increase our monthly mortgage too much on the first property.
Not sure if any of this is something I’d advise others to do, but sharing to demystify slightly the process. There was no grand plan or huge amount of capital, just stumbling along and figuring it out as we went along. Also, whole thing could be a huge mistake! Time will tell.
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