5% Down Blueprint - FREE
Why 5% down? The Math Behind it.

5% Down Blueprint - $15.7k → $5M

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Here’s the math behind my $15.7k → $5M duplex - and why 5% down owner-occupied is the proven path to start real estate wealth.

How I Turned $15.7k into $5M Lifetime Wealth

At 26, I bought a $200k duplex.
Put down 5%. Lived in one side rent-free & tenant paid the mortgage. $2,400 in total value ($1,200 rent and $1,200 rent savings).

Lifetime Nominal Total:

Put the numbers into my ‘Deal Analyzer’ inside the Master Rental Calculator, after income and expenses this is what the results were:

  • Annual Cashflow (first year): $7,378, Cash on Cash Return: 46.99%, Cap Rate: 10.71%, With Loan Paydown: $9,541 total cashflow, Total ROI: 60.77%.

I then ran the ‘Growth Check’ inside the Master Rental Calculator, after and this is what the results were:

  • $2,688,979 Net Cashflow (yr 60 at 3.00%)

  • $2,258,060 Net Appreciation ($200k → $2.2M at 4.27% over 60 yrs)

  • $190,000 Loan Paydown (Paid for by tenants at yr 30)

3% growth for cashflow and the US average growth for appreciation at 4.27% is on the low end but both ranges can be near 5%+.

Numbers can be recreated and changed in my “Master Real Estate Calculator” downloaded below and throughout the course.

Total lifetime wealth: $5M. From one $16k decision.

$50M+ Snowball - Your First Duplex (2-4 Units) into a 7-Figure Portfolio

Imagine this is YOU:

You buy Duplex #1 ($16k down).

  • Year 0 – Buy Duplex #1

    • $200k duplex • $16k total cash in • Live in one side rent-free

    • Year-1 result: $7,378 cash in pocket + $2,163 principal pay-down = $9,541 total wealth created

  • Year 2 – Buy Duplex #2 (house-hack again)

    • 2 duplexes • Saved equity + cash flow → $0 out of pocket

    • Portfolio: $424k value • ~$55k equity • ~$19k/yr total wealth creation (cashflow + loan paydown)

  • Year 5 – First big cash-out refi → Buy Duplex #3 & #4

    • 4 duplexes • $930k total value • ~$170k equity • ~$43k/yr total wealth creation (cashflow + loan paydown)

  • Year 9 – Second refi wave → Buy #5 through #8

    • 8 duplexes • $2M+ total value • ~$450k equity • ~$95k/yr total wealth creation (cashflow + loan paydown)

  • Year 13 – Third refi → Buy #9 through #13

    • 13 duplexes • $3.5M value • ~$1M net worth (millionaire status) • ~$175k/yr total wealth creation (cashflow + loan paydown)

  • Year 18 – Fourth refi → Buy #14 through #20

    • 20 duplexes • $6M+ value • ~$2.2M net worth • ~$320k/yr total wealth creation (cashflow + loan paydown)

  • Year 23 – Final big refi → Buy #21 through #32

    • 32 duplexes • $10M+ value • ~$4M+ net worth • ~$500k/yr total wealth creation (cashflow + loan paydown)

  • Year 30 – Most original mortgages paid off by tenants

    • 32 duplexes • $14M+ value • $10M+ net worth • $550k+/yr total wealth creation (cashflow + loan paydown)

  • Year 60 – Everything gets paid off, still growing 3%/yr

    • 32 duplexes • $50M+ total value • $50M+ net worth • $2M – $3M+/yr passive income

    Total wealth: $50 Million+ net worth. From one $16k decision.

Why 5% Down Owner-Occupied Crushes 25% Down Investing?

Owner-Occupied vs Commercial Investor:

  • 5% Down (Live-In) vs 25% Down (Investor)

  • $16k down on $200k vs $50k down on $200k

  • Tenant(s) often pays 100% mortgage vs You pay ~4x+ more out-of-pocket (Down payment)

  • Live rent-free Day 1 vs Negative or breakeven cashflow first 5+ yrs

  • FHA loan (580 credit OK) vs Conventional (620+ needed) & 25% down required

  • $5M lifetime wealth vs ~$2.57M (same model & same property)

  • 2X difference in wealth - this opportunity only lasts while willing to owner-occupy.

    Easiest barrier to entry with stronger ROI and amazing Cash-on-Cash return.

Even just One Duplex (2-4 Unit) = Generational Wealth

$16k → $5M = 328× return. Tenant paid off the loan. You lived free.

Math checks out in Excel: (Numbers can be found in my “Master Real Estate Calculator” downloaded below.)

  • $16k in → $5M out
    $15,700 down (5%) on $200k duplex
    3% annual rent + 4.27% appreciation | Exact Cashflow and Operation Expenses calculated using Master Rental Calculator under ‘Deal Analyzer’ page.
    60-yr hold → $5,147,039 extracted (cash + appreciation)

  • Year 1: Live rent-free
    $7,377.65 Annual Cashflow + $8,540 Net Appreciation + $2,226 Loan Paydown + 10,000 Initial Down Payment → Total = $28,144 net worth

  • Year 5: $108k+ net worth
    $39,169 Net Cashflow + $46,506 Net Appreciation + $12,659 Loan Paydown + 10,000 Initial Down Payment → Total = $108k+ net worth

  • Year 30: Paid off
    $350,955 Net Cashflow + $501,150 Net Appreciation + $190,000 Loan Paid Off + 10,000 Initial Down Payment → Total = $1 million net worth

  • Year 60: Fly-Wheel Affect
    $2,688,979 Net Cashflow + $2,258,060 Net Appreciation + 200k Rental Paid Off = $5 million net worth

    Generational Wealth. From one 16K deal.

The 5% Down Blueprint — Your Complete System:

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