Uploaded January 2023 | Updated September 2026, 2 weeks ago
You know those guys who buy PR with stories like, “How I bought 55 properties by 23 year old” and “I quit my job to be a property investor while being at McDonalds”.
Well, here’s how they do it. They buy a single property, wait for the value to rise and use that equity to buy another property. Then they wait for an equity increase again and buy another place. Rinse and repeat forever.
While it may sound like a great plan, if some properties aren’t rented or a few tenants fail to pay their rent, you can be staring down the barrel of a huge cash crunch. Also, if rates rise quickly you might be underwater by a pretty large amount.
You know those guys who buy PR with stories like, “How I bought 55 properties by 23 year old” and “I quit my job to be a property investor while being at McDonalds”.
Well, here’s how they do it. They buy a single property, wait for the value to rise and use that equity to buy another property. Then they wait for an equity increase again and buy another place. Rinse and repeat forever.
While it may sound like a great plan, if some properties aren’t rented or a few tenants fail to pay their rent, you can be staring down the barrel of a huge cash crunch. Also, if rates rise quickly you might be underwater by a pretty large amount.
