Best way to passively grow real estate value?

[Mark Weins]

Is the best way to passively grow your real estate value to move houses every 6 years? Say you want to buy a home for your family and live there but also want to utilize leverage to make profit by selling the home, trading up, and moving to a new one in your local neighbourhood every 6 years. Assuming you buy your first home when your child is born at age 0, you will have 4 houses before they are independent and can live by themselves (I set the age conservatively at 24). If you live in an area with high yearly appreciation like Seattle and we assume you can get 8% yearly appreciation, here would be the following math for this idea for 30 year mortgages at 6.6% interest :

1st house 500k, value after appreciation from 6 years = 740k, profit = 60k, down payment=100k, monthly payment= 2.5k

2nd house 1M, value after appreciation from 6 years = 1.48M, profit = 110k, total profit = 170k, down payment= 200k, monthly payment= 5.1k

3rd house 2M, value after appreciation from 6 years = 2.96M, profit = 240k, total profit = 410k, down payment= 400k, monthly payment= 10k

4th house 3M, value after appreciation from 6 years = 4.44M, profit = 320k, total profit = 730k, down payment= 600k, monthly payment= 15k

By doing this you can afford houses that you normally couldn't afford through passive income by constantly trading up houses and utilizing leverage to not only live in your house and keep upgrading, but you can also use the profits from selling the house to invest or as a down payment for the next house. This is assuming you have a stable income from a high paying field like tech with household income scaling between 100-550k per year which is possible if you have a wife with a high paying job as well. For further comparison without doing this idea, you would need to make 720k a year to afford the 3 million dollar house on top of having to pay a 20% downpayment out of pocket as well. Doing this idea you would make 730k simply by living and upgrading your home every 6 years (Yes it's a pain in the ***), and each house down the line would contribute to your down payment for the next house. 

For comparison assuming you wanted to make 730k through investing in the S&P 500 index in 24 years at 8% annual returns, you would have to contribute 6k per year to get this amount. You could easily sell the house once your kids are independent and move to a 500k house, and have 200k to spend for your retirement. The only caveat is you have to move 4 times while you have a family but you get to keep upgrading while being payed to do so as long as you keep reinvesting in a high appreciation or hot area. This would work even better if you could secure higher appreciation through finding fixer uppers and rehabbing them.

If you own a standard 1M home and don't move for 24 years, you would get 192% appreciation which is 1.92M when you sell the home and assuming you payed a 200k down payment and had 6.6% interest, you would pay 1.85M in total for the loan and cost of the house and make 70k for living in your home for 30 years. That is not a good deal

Is my math right for this idea?

TLDR: If you are a high earner, upgrading and re-investing into a new home frequently generates sizeable profits that pay off your next home down payment and can contribute 700k to your retirement for 24 years of ownership.