Building another Stream of Income. Written, due to multiple request.

How I Built a Million-Dollar Real Estate Portfolio (1998–2008)

This is Erma J. Major’s personal path to generating a million-dollar portfolio. Between 1998 and 2008, I started small, took strategic steps, and steadily built wealth through real estate. The beauty of real estate is that it allows you to start with little and grow into a million-dollar portfolio if you stay consistent.

The first is to buy a two-family, rent one unit out and live in the other unit. Charge enough rent to cover the mortgage, water bill and Insurance. Obtain a 2 -3 3-bedroom brick duplex , in a neighborhood that is holding its property values. Move into one and rent the other out. Buy the next and so on, renting both out, generating a monthly income. The second scenario. Find a 4-unit deal, where the seller is in distress. Seller is behind on property taxes. Inherited properties, where the current owners live out of State)

Use a 5% down payment loan from Fannie Mae. Example: $20 K, down buys a $400 K property.

Raise the rents on each unit $100–$200 per month. Purchase one 4-unit with at least 2 but preferably 3 3 bedrooms, each year for 5 years. Get rent assistance, so you will receive your portion on the 1st of each month, via direct deposit. (attend your local classes) so that your property will comply. You have the option of selling or keeping for rental income. Always do background checks and income verification, on all potential Tenants. List each Tenant on the Lease agreement. Anyone over 18 needs a background check. Include in the lease agreement that no one is allowed to stay past 72 hours without a background check. Year 5, package them together and sell as a 20-unit portfolio.

With the combination of cash flow + appreciation, you can crack $1 M.

You might want to find and renovate properties for resale, for example. Search for foreclosures that are selling for far below market value. I purchased one for 32,00.00. Everything in the neighborhood was selling for 100,000.00 at the time. I lived in this single family, Ranch for 14 years. Since, I did an all-cash purchase, I had no mortgage. This property is now assessed at 220,000. I need a Condo, so it is now under contract for a Condo.

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