Let’s say you focus on purchasing a fourplex apartment every two years. This four-family apartment building cashflows $200 a door, including professional management. Let’s say you self-manage it and after costs associated with that earn an extra $50 a door.
I believe this is a discipline that benefits from momentum. When you decide to start, it may take a year to acquire your first building. Then it may take two years to get the hang of the ropes, save up enough money, and feel confident buying your second one.
The low down payment FHA owner-occupied loans come with a lot of fees. They also come with many terms and conditions that restrict lending.
This model works really well not because it is focused on the cost reduction of your living expense but on acquiring quality assets using mortgage products that benefit owner-occupants. It is a real portfolio builder.