I’ve recently challenged myself to turn inexperienced real estate investors, like yourself, into millionaire property moguls in just a few steps.
Congratulations on being one of the lucky ones to fall under this umbrella, because what I’m about to hand you could make you feel like you’ve won the real estate lottery.
What I mean is, I’m going to show you how to turn a miniscule investment into an embarrassment of riches…
The lottery winning property I’m talking about is rental property.
Imagine being paid $10,000 on the first of each month while you spend the rest of the month doing whatever you please.
That’s exactly what this real estate technique will do for you if you follow my directions.
These rental properties that could pay you $10,000 a month come in the form of downtown apartments.
The first step you need to take is to find your very first ‘jackpot property.’
You can do this by using tools like Zillow.
When you got to Zillow.com, search for apartments in a highly populated downtown area.
You don’t necessarily have to live in this area, I would just recommend that your first property be within 30 miles from you, so you can keep a close eye on it when you need to.
Ideally, in today’s market, you could find a downtown apartment that’s selling for around $120,000.
You’re most likely going to have to take a mortgage out for this first one, which won’t seem like such a scary prospect when I show you the numbers.
A 30-year mortgage on an apartment valued at $120,000 (with a $20,000 down-payment), would amount to a monthly payment of around $500 including property tax (in the current market).
So, you’ve got your monthly payment of $500, but you don’t have a tenant. That shouldn’t be anything to worry about if you picked an apartment in a highly-populated downtown area.
Apartments in these areas usually have very little vacancy and the turnaround time is normally less than a week (less than 24 hours in some cases).
With an apartment at that price, you could expect to rent it out for about $1,300 a month.
That easily covers your $500 mortgage payment, but it’s extremely important you don’t pocket the remaining $800.
In a little over a year, this money will amount to another down payment on an identical property.
At that rate, you’ll have $2,600 rolling into your bank account each month—$1,000 will be paying off your mortgages.
As you continue to pile up your rental properties, your real estate profit will start to compound and increase rapidly.
And as you move forward you can start adding two-bedroom apartments to your portfolio, which can be rented for $1,600 a month or more.
Building up to 6 two-bedroom rental properties will see $10,000 flooding into your bank account each month.
As you use these real estate building blocks, your mortgages will quickly become paid off and you’ll sever reliability on them.
You’ll soon be able to buy your properties in full and then the entirety of the $1,300 in rent payments will be yours.
At that point, 6 two-bedroom apartments would hand you a yearly salary of $115,200 and you wouldn’t have to do anything other than pick up your checks once a month…
Using rental properties like this will make you feel like you’ve won the real estate lottery.