Nick Perry walks through a six-step rental property strategy: buy distressed homes under $150,000 in Midwestern cities, put 25% down, target $300+ monthly profit, hire a manager, then refinance after two years to scale. The math works if you find deals at 70% of after-repair value and rent-to-price hits around 1%.
What is the fastest way to get rich? So if someone asked me how to get rich quick, I would just tell them to invest in single family properties. I went from sleeping on a couch to being a millionaire with these simple steps. Step one. Pick three cities where properties are under $150,000 and you can actually get 1% of your down payment in monthly rent from your tenants. Think tenant friendly states in the Midwest. Ohio, Indiana, Missouri. You get the idea. Step 2. Find broken properties where you can get in for 70% of what they'll be wor after they're fixed up. So if it'll be worth $100,000 fixed, then your max total investment is $70,000. Step 3. Once you find a property, put 25% down minimum. This is so that you get equity and cash flow from day one. Step four. Make sure it profits 300 or more every month after all expenses. Step five. Get quality management in place. You shouldn't manage your own properties. You should only focus on buying. Good management costs 8 to 10%, but it's worth every penny. Step 6. Refinance and after two years, properties appreciate. So pull equity out and buy more properties. That's how you scale without using your own money.
