Buying new primary every year on Northside

[Sean Hayes]

Hi Indy investors. I have a scenario and was looking to get opinions from people in the area. I want to take advantage of buying a new SFH with a low downpayment of 5%, living in it for a year, renting it out and then repeating the process with a new primary and 5% downpayment. This seems like a great idea for someone to start acquiring properties as long as they are flexible with their living situation.

The properties I am interested in are all on the Northside above the 465 loop - Carmel, Noblesville, Westfield, Fishers and Cicero. As many of you probably know the Northside doesn't cash flow as well as other areas or hardly at all. My rationale for picking this area is the Northside tends to have better school districts, better tenants and more chance for appreciation. Does this strategy seem beneficial for someone if they aren't too concerned with a large cash flow? The benefits would include getting the loan pay down and the chance for higher appreciation while possibly getting a more desirable tenant base. Considering I would only be putting in 5% down for each property it seems to me this is a winning strategy to get a new property every year without having to force a lot my capital into it. Does anyone have any thoughts?