Finding My Niche In A Tough Market

[Connor David White]

I'm in Utah where it's a little bit tough to get into real estate right now and I realized that almost everybody here is struggling to get a house. I've got a draft business model which is essentially helping people house hack. I still want to start out with a house hack for myself, and probably do mainly rentals in college towns but I want to diversify into as many different types of real estate and other investments as I can. Before I get waist deep into something that will never work I wanted to get some thoughts and critiques. I'd appreciate any feedback you have, thanks!

Model:

Find a family wanting to buy a home and have them rent in a multifamily with the other tenants just renting for a temporary living situation. Once the original families lease is up refi and return a portion of the cash to the family to help with a down payment. Use the remaining cash and cash flow to buy more rental properties and potentially other 'rent to down payment' properties. There is a large market of people who simply don't have the money to pay for a down payment and offering help with that would attract them. They would be compelled to stay longer for assistance with their down payment and to keep the property in a better condition, higher rent means more money to us and them. When I do refi the property I still own it and it keeps paying me even though a portion of the equity is given away.