How To Continuously Use Low Money Down Options

[Johnathan Alvarez]

Hi BP, my name is Johnathan Alvarez. I was wondering if it was possible to use an FHA loan to buy a 4-plex, live in it for a year, and downgrade every year to a triplex, then duplex, and single family home to take full advantage of a low down payment on rental properties. If it's not possible, what are some creative financing ideas you all might have that might be useful to anybody looking to build a sizable real estate portfolio as soon as possible? Thanks in advance!

[Jesse Stephenson]

How about doing a combination of House Hacking and the Brrrr strategy. For example buy a beat up 4 plex, live in it while you upgrade each unit, raise rents, get a new higher appraisal, do a cash out re fi and go buy another beat up 4 plex etc and repeat.