Today, the Picton-based young gun is 26 years old and working as a train driver. And he has a portfolio of eight properties across the east coast of Australia, worth $3 million.

It hasn’t all been smooth sailing. When he started buying property, at 19, he was working as an apprentice auto-electrician for his father and earning minimum wage.

By working overtime, and selling his own car and skydiving equipment, he was able to scrape together a deposit of $34,000.

With these funds, he bought a $342,000 new home in the Macarthur region of NSW, in Thirlmere. By using it as his first home he managed to avoid paying stamp duty.

Then, he turned it into an investment property rented for $470 a week, which more than covered his mortgage – leaving him about $150 better off a month at the time. Today, that property is worth an estimated $600,000.

At the time, he was looking around Thirlmere and “realised I could repeat the process”.

So, a year later, after a bit of saving, he could afford to buy again – this time buying a $303,000 older house in the same suburb that needed some attention.

“I was there renovating every night after work. I learnt how to repair, paint and fix the whole home,” he said.

With a $5000 budget, he was able to spruce it up and rent it out for $430 a week – giving him some more cash after the mortgage was paid. 

But when he went back to find out if he could get another mortgage, he hit a dead end.

“I went to two banks for a third loan and couldn’t get one – I found out the first two were cross-collateralised. I didn’t know what that was at the time,” he said.

Because his loans were crossed, which meant one home was used as collateral for the other, this meant the bank had greater control over how he could use any additional equity for future investments.

So he spent the next year and a half saving up and realising he needed help to get to the next property.

“I went and sought out a mortgage broker as I wanted to get past the barrier. I found a mortgage broker who had 19 properties himself, he looked at it and said we had to uncross the loans,” he said.

In 2014, when they’d rearranged his financing and created a plan for which banks to approach for lending, he was given the green light to carry on investing. 

As he was earning under $60,000 a year until his fifth property, it was critical he maintained a high cash flow so the banks would still lend to him.

These suburbs were areas that fit his strategy of looking for low-priced suburbs with established houses, higher rental yields and, where possible, the capacity to add value with renovations, granny flats or future subdivisions.

When he had identified these areas, he went on a spending spree. In 2014, he bought two houses – in Brisbane’s Crestmead and Deception Bay for $305,000 and $259,000 respectively.

One year later, he bought another house in Queensland – this time a $310,000 property in Ipswich suburb Raceview.

And months later, he bought a $182,000 house in Davoren Park, South Australia.

By 2016 he was ready for one of the most lucrative purchases of his portfolio – a house in Greater Melbourne’s Carrum Downs.

Having had the area on his radar as being a low-price suburb surrounded by areas with higher values, with comparatively high rents, he had been watching the listings online.

And when a three-bedroom home on a relatively larger block hit the market, with side access, he had a hunch that it could be subdivided. A quick call to council revealed that it would be possible, and he put in an offer.

But his initial offer was gazumped by someone else.

“I was devastated when I lost it as I had flights booked to Melbourne and I knew I would have made money instantly from buying it,” he said.

A few days later and the agent was back on the phone – the contract had fallen through and the owners were now getting desperate to sell.

His $345,000 offer was accepted and, now in the stages of subdividing and building a second home on the block, he added properties seven and eight to his portfolio.

Today, he is positive cash flow by $25,000 a year and if he sold his properties he would walk away with $1 million before costs are considered.

Selling costs could be substantial, including any applicable capital gains tax and transaction fees that would erode his profit.

Yet he isn’t ready to stop yet.

As his income has started to increase, now in the six-figure bracket when he works additional hours, so have his plans for his investments.

The ambitious Gen Y aims to reach $5 million worth of property in his portfolio – with $2000 a week in positive cash flow.

He also wants to build a rent roll and create a buyer’s agency business.

At the moment, driving a train and working shift work while renting in Picton with his fiance, who is a property manager, he sees his lifestyle as short-term pain.

“I bought a $30,000 car in the early days, then sold it for $11,000 [to help fund his initial deposit]. I had the wrong idea. I then bought a car for $2000 that I blew up and had to rebuild twice but I sold it later for $2000.”

“It’s better to sacrifice now for better things later on,” he said.

While he’s not completely sure what his future lifestyle will look like, it’ll probably involve “renting a mansion on the northern beaches [of Sydney] near the water … and buying a Lamborghini,” he laughed.

1) Balance your portfolio: Consider your cash flow, and remember to look for a balance of growth and rental income.

2) Find an expert team: Look for experienced mortgage brokers and mentors who can guide you through the process.

3) Strategic planning: Know where you want your portfolio to be and always aim to be three-steps ahead in your mind before buying.

4) Compound interest: Sacrifice now and do the hard yards while you’re young, because the longer you have to grow your investments the better off you’ll ultimately be later.

5) Stress-test your portfolio: Work out how much you need to have in savings to cover you for 12 months if interest rates rise or you lose your job.

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