The plan begins with purchasing your first home with as little as zero percent down and building equity right away. Equity is the difference between the value of your home and the amount you owe on your home. So if you buy a home for $200,000 and put three percent down, you immediately have gained $6000 in equity.
According to historical data, real estate has appreciated at an average annual rate of 4%. As you pay down your mortgage your equity grows and the upward trend line of value contributes to the increases your initial home investment.
One to two years after your pruchase your first home, you can use an FHA loan to purchase a two to four unit multifamily property, allowing you to generate passive rental income and build equity quickly.
After you have sat on your mult-unit for a few years, you can move into your new primary residence. This allows you to upgrade your home and continue to build equity over multiple properties. And finally, if you want, you can buy that vacation home on the beach you have always dreamed of.