Primary Res to Rental and Repeat

[Bradley Mair]

Has anyone found success in turning your primary residence into a rental, buying a new primary with 3-5% down and repeating each year?

Thanks. 

[Koren Lavi]

@Bradley Mair Yes!

This is a strong investing strategy and is known as the nomad method. My wife and I have been doing this since 2019 in the Denver area and its treated us well. 

The minimum time that lenders like to see you living in a primary residence is at least 12 months (although there are exceptions to this rule on the grounds of “life altering events”). 

And to clarify with some of the above responses, you CAN keep putting 5% down on subsequent primary residences. Not only can you put a low downpayment, but you also will get a lower interest rate on your mortgage each time you do this. The beautiful thing is when you move out of your primary residence and rent it out, your interest rate will stay the same 👌