- Kevin Paffrath and his spouse leveraged their first home to buy additional property.
- They bought houses that were below market value and fixed them up.
- They then refinanced their home and used a home equity line of credit to purchase the next property.
Kevin Paffrath was nervous about purchasing his first property.
He told Insider that he and his wife had each saved about $9,000 with the plan to combine their funds and buy their first home. But what they soon realized was that they didn’t qualify for a mortgage. They didn’t have two years of tax returns as per the requirements for a loan.
The couple was left with limited options and decided to turn to a co-signer, Paffrath’s father, who became a 1% owner. This meant the couple was able to secure a 30-year fixed mortgage with 3.5% down. And so $11,000 later, Paffrath and his now-wife split ownership on the remaining 99%.