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Compare Nomading™ to buying 25% down payment rentals. In both cases, you buy an owner-occupant property with 5% down and PMI first.
Should you use the Nomad™ strategy to acquire properties with a minimal 5% down payment as quickly as possible? Or is it better to be a little more patient and save up for full 25% down payments and buy rentals without moving into each?
By saving up for a 25% down payment, the properties will cash flow better. That may allow you to save up faster for subsequent properties and maybe... just maybe... ultimately be able to buy properties faster.
If you're buying properties with a 5% down payment, there's a chance they could have negative cash flow—or what we often refer to as deferred down payment. Deferred down payments mean that it is slower to save up for the next property purchase. This could ultimately slow down how fast you can acquire properties.
Of these two strategies—25% down payment rentals or 5% down Nomad™—which will lead to the fastest path to financial independence? Which leads to the highest net worth? Which has the least amount of risk?
Check out the video and interactive charts from this class here:
https://RealEstateFinancialPlanner.com/model/nomad-versus-25-down-payment/
Or, see St Paul specific, detailed analysis of a variety of strategies here:
https://RealEstateFinancialPlanner.com/model/MN/St_Paul/
Learn all about investing in real estate in St Paul, Minnesota with a combination of real estate financial planning and modeling with numbers specific to St Paul plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to St Paul).