Multiple homes at 5 % with PMI vs one home at 25% Down?

3 Replies

I follow numerous financial independence blogs. One of them talked about generating 100k a year in income through the landlord real estate route. The post showed that investing with 25% and leveraging was quicker to 100k in income than saving and paying in cash for each house.

So my question is, what if you pay 5% down on multiple houses instead of doing 25% down on one? Has anyone ever done the math to see if you could get there quicker by simply paying 5% down (doing a refi down the line) on multiple homes vs 25% down on one? If it hasn't been done yet, I plan to make a mock up, but figured I'd ask to save myself the headache.  Theoretically, I would imagine that the ability to purcahse more than one home at 5% down could stack up enough to have you coming ahead vs 25% down on one house.

Thoughts?

I curently have enough for 25% down on a 120-150k home. I will have enough by the end of the year to afford two of these. I'm currently overseas, and plan on making a purcahse the next time I come back to the states (at the end of the year). So this is just food for thought so I can make a wise decision.

5% down loans are for owner occupant loans only, so you could only do one this way.

Wow, I knew that and it didn't even cross my mind when I thought about this haha. Definitely not going the FHA route.

Thanks

You could try to multiple the result buy buying multi unit building and trying to find bank which will accept 20% down or find a deal eat below market and refinance it down the road or use other people money

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