How a 27-Year-Old Couple Bought Two rentals in 12 Months by Rent-Vesting
For many young Kiwis, the traditional path to homeownership involves saving for a deposit and purchasing their first home to live in. But what if there was a different way to get ahead financially? Enter rent-vesting—a strategy where you invest to maximise your returns and rent where you want to live.
A 27-year-old couple signed up to Wolfe Property Coaching to learn how to do this in a systemic way.
Instead of purchasing a home for themselves to live in, they focused on buying investment properties that generated cash flow. Their goal was to grow wealth faster by leveraging rental income and property appreciation.
Within just 12 months, they successfully purchased two cash-flowing investment properties in Auckland. By targeting high-growth areas, using the BRRRR strategy (Buy, Renovate, Rent, Refinance, Repeat), and working with Wolfe Property power teams across the country, they were able to create 6 figure equity gains, buy two cashflow positive rentals which gave them passive income to use to rent where they want to live
Rental #1: Otahuhu, Auckland
💰 Purchase price: $720,000
🛏️ Configuration: Originally 3-bedroom unit
The renovation:
With a targeted renovation my clients
added an extra bedroom
new kitchen that opens up to the living area
upgraded bathroom
full cosmetic updrade
The results
Purchase Price = $730,000
Renovation = $90,000
New Registered Valuation = $970,000
Equity Gain = $150,000
Positive Cashflow
Equally as important is the cashflow.
If these clients were to buy the property and do nothing, they would need to top up the rental by $7,600 every year.
However the renovation created significant value so that it was now bringing in passive income every month.
How equity gain paid for their next properties
The equity created in that first rental was used as the deposit for the second rental in Auckland they bought a few months later.
POSITIVE CASHFLOW AND MORE EQUITY GAINED
This second rental was also cashflow positive. The equity created here allowed them to buy ANOTHER home in Dunedin.
Watch Webinar for the detailed breakdown
I recently recorded a webinar on this exact deal. Here’s what I covered:
the exact renovation scope they did
explained how equity gains can be used as deposit for next home
floorplans showing where the extra bedroom was created
Click here to watch the webinar
Or if you want to get ahead and copy what this young couple did - book your free 15 minute discovery call now