This is how I leveraged my first home to build a real estate portfolio.
Today, I’d like to share with you how my first property became a stepping stone to owning three amazing properties. In 2014, I bought my first home in the Midwest for $322,000 with an interest rate of 6.4%, which was quite favorable back then.
I lived in the property for two and a half years and eventually sold it for $347,000 without making any improvements or renovations. My initial down payment was $52,000, which I took from my savings account and essentially invested in the property. The $25,000 difference between the purchase price the and price I sold it for is known as appreciation.
My down payment remained as equity in the home, and by paying the mortgage every month, I was essentially paying myself and reducing the principal balance. After two and a half years, I had paid off around $30,000 of the principal. When I sold the house, I received a check for $107,000, nearly doubling my initial investment just by living in that home.
This experience demonstrates how wise property investments can yield significant returns, especially in favorable markets like San Diego. Feel free to call or email me if you have any questions or would like more examples of my personal success in this area.