Accumulating Rental Properties question

[Tene Samuto]

Hello,

I would like to create wealth using real estate ( to quit my job) and am considering buying my first multifamily home in a year. I plan on buying and holding multifamily homes. How do people who own multiple units ( 10+), accumulate them? Do I have to save 20% every year from my salary? I heard about HELOC loans but don't quite understand them.

please help

[Garrett Christensen]

There are a number of different strategies that people use, one of them being saving up cash for the down payment. Another common one is working in partnerships; these can be structured in many different ways. For example, both parties bring the cash, one brings the cash and the other facilitates the deal, maybe one brings cash and the other renovates/pays for the renovation. Each of these will yield different ownership percentages and there can even be combinations of all of these. Another option is bringing in outside investors, but this involves a lot more regulation and is typically for much larger properties.

A HELOC could be a way to secure some needed cash, but you need to make sure the property you buy can produce enough income to make all payments, including the HELOC.