4 Rentals in 7 Years with LOW Money Down (5% - 10% Down!)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 18 December 2024

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Don’t have a ton of money to invest in rental properties? No problem! You don’t need hundreds of thousands of dollars to start building wealth. Chris Young, a (not-so) rookie investor from Southern California, started with just five percent down. He bought a $500,000 home in pricey Los Angeles for just $25,000 out-of-pocket. Now, Chris has four rental properties, one of which he uses as a vacation home, and hundreds of thousands in equity! Plus, he did it all while working a W2! Chris knew he wanted to invest in real estate early on. So, when he started his full-time job, he also got his real estate agent license, allowing him to have a backup source of income in case his career didn’t work out. But, thankfully, his real estate has been doing more than alright! He performed a “live-in BRRRR” (buy, rehab, rent, refinance, repeat) on his first property, making him hundreds of thousands in equity, then bought another one! But, after attending BPCon, Chris knew he needed a true investment property. What gets you monthly cash flow and a vacation home to use whenever you want? A short-term rental! But not everything went as planned—one unlucky event put his entire house out of commission for months! However, Chris is still thrilled that he has bought this property. He shares why he picked its specific market, how he dodged local competition, and did it all with just ten percent down! In This Episode We Cover: How to start building your real estate portfolio with just five percent down! The “live-in BRRRR” strategy that made Chris hundreds of thousands of dollars Picking your vacation rental market and why you DON’T want to go where everyone else is Using a ten percent down second home loan to buy your first short-term rental The one very unlucky event that cost Chris $40,000 (you CAN’T avoid it!) And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Grab the Book, “Short-Term Rental, Long-Term Wealth” Find Investor-Friendly Lenders Real Estate Rookie 486 - Quitting His Job with Real Estate After Cracking the Cash Flow Code w/Miller McSwain Connect with Chris (00:00) Intro (02:24) 5% Down First Property (06:57) Property 2 (Rent-by-Room) (11:04) Finding 1st Short-Term Rental (19:36) 10% Down Sequoia Vacation Rental (29:26) Losing $40K! (30:01) Setting Yourself Apart (39:44) Connect with Chris! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-498 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Can you turn a risky real estate investment into a success? Even during the Airbnb bust and the 8% interest rate, we're going to find out today. In 2022, there were historic storms and high interest rates. But we're going to talk about navigating many of those things with Chris today, our guest, who has
0:22.5	turned his real estate portfolio into its successful short-term rentals.
0:32.3	This is the Real Estate Rookie Podcast. I'm Ashley Care, and I'm here with Tony J. Robinson.
0:38.7	And welcome to the podcast where every week, three times a week, we bring you the inspiration,
0:43.7	motivation, and stories you need to hear to kickstart your investing journey. And I'm super excited
0:48.0	today to have Chris Young on the Real Estate Rookie podcast with us. Chris, welcome in,
0:51.4	brother. Thank you so much for having me, guys. Really appreciate it. Chris, let's start off with why you chose real estate. How did it come into your life?
0:58.7	Oh, man, that's a tough question. So growing up, I mean, I think I was always interested in real estate.
1:04.2	My grandmother actually immigrated to the country and owned a couple rental properties as I was
1:09.8	growing up, long-term rentals.
1:11.7	But I was that kid who, you know, was in college and I should have been studying for exams,
1:15.9	but I was on Zillow looking at properties and saying like, oh, can I find a good deal, you know,
1:19.7	had no money, no experience, but I always knew I kind of wanted to end up in that space somehow.
1:26.1	And so fast forward a few years, graduated college, got an engineering degree, got into engineering.
1:32.9	And my first job I wasn't, you know, super happy with.
1:36.6	I think I ended up realizing it was the company, not necessarily the job.
1:39.8	But as a backup, what I ended up doing was I ended up getting my real estate license.
1:43.8	So I wanted to make sure that, hey, if I'm going to stay in this job, I don't want to feel stuck, right?
1:48.9	So I wanted to give myself an out a second option.
1:51.1	So, hey, if I give myself some time in this career and it doesn't work out, I know I could go into this real estate thing and do well.
1:57.2	I still have my license.
1:58.4	Don't really use it. But what it gave me was the knowledge to
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