This investor built a multimillion-dollar real estate portfolio with low-money-down loans and little cash-to-close. Thanks to his smart “rinse and repeat” strategy, he’s quickly scaled from zero to 13 rental units in just four years, all while collecting thousands of dollars of cash flow a month. He would have never been able to get to this place if he hadn’t followed a strategy many investors are too scared to try.
Mike Johnson knew the best way to take bigger career risks was to have a backup plan. The ultimate passive income plan? Rental properties. But he didn’t want to put 20% to 25% down on each property he bought, so he started where many investors do—house hacking. Four years later, he’s continued his repeatable house hacking strategy, purchasing a new property every year, living in one unit, and renting out the others.
This has allowed Mike to build a portfolio worth $3.4 million in just four years while buying in B+ or A-class neighborhoods and taking home a healthy amount of cash flow. But he has dealt with his fair share of headaches—squatters, non-paying tenants, and a lot of purple paint. Mike still says investing has been a massive win for him, and you can repeat his same strategy!
Dave:
This investor bought a property worth one and a half million dollars in a great neighborhood in a major US city with only $35,000 cash in 2024. It is actually possible. Hey friends, welcome back to the BiggerPockets podcast. I’m Dave Meyer, head of real estate investing here at BiggerPockets. And today on the show we’re talking with Mike Johnson, an investor in Chicago. Mike started his investing journey with a $13,000 down payment on a duplex in 2021, and he has house hacked his way into 13 units in just four years now. He’s living in one of Chicago’s most desirable neighborhoods with thousands of dollars in monthly cashflow and the potential for millions in appreciation over the next couple of years. And Mike isn’t doing anything that the…