How to Build Real Estate Wealth Without Selling Your Home

By Mark Callender

Hello, my name is Mark Callender and I am a licensed real estate agent with RE/MAX Results. Because I have been helping families buy and sell their homes for more than 18 years, I am now helping their children to buy their first homes and their parents to downsize. No matter the direction you’re moving, my goal is to make the process as calm and enjoyable as it can be.

Have you ever felt like you are stuck in your current home because your interest rate is just too good to leave? Many of our friends and clients have built long-term wealth through real estate over the years, and right now, the biggest challenge is figuring out how to move up to a new house without losing the financial advantage of the home you already own.

The biggest hesitation we hear right now is interest rates. Many homeowners already have very low rates on their current homes. Walking away from that feels painful, and in many cases, it should. But at the same time, people still want to upgrade homes, relocate, or build more income.

I recently sat down with Molly Nadeau from Neighborhood Loans to discuss a powerful strategy: multiplying your wealth by keeping your current property instead of selling it.

What’s the “departure home” strategy? The secret to building real estate wealth is keeping the keys. Most people think they have to sell their current house to buy the next one. One smart approach is to keep your current home and replace yourself with a renter. Instead of selling, the home becomes an investment property.

By turning your current home into a rental property and moving into a new primary residence, you keep that 3% rate on what is now an investment. You will likely never find a 3% rate on a new investment property again. This keeps your monthly costs low and your cash flow high.

Why does this strategy make financial sense? There are two major reasons why this approach beats buying a standard investment property later:

● Lower down payments. When you buy a new home to live in (owner-occupied), you can often put down much less money than the 20% or 25% required for a dedicated investment property. This saves you significant cash upfront.

● Better interest rates. Interest rates for a home you live in are generally about 1% lower than rates for an investment property. Even with great credit and a large down payment, you’ll almost always pay a premium for a property you don’t live in.

Molly pointed out that even with excellent credit, the gap between a primary residence rate and an investment rate is at least 1%. Once your credit score or down payment amount changes, that gap can get even wider.

When you step back and look at the full picture, this strategy can improve cash flow from the rental, reduce upfront costs on the new purchase, and keep more money working for you in the long term. It’s not the right move for everyone, but for homeowners who want to grow wealth without resetting their finances, it’s worth understanding.

Building wealth doesn’t have to mean starting over. It’s about making the assets you already have work harder for you.

If you’re wondering whether this strategy could work for you, let’s talk it through. Feel free to reach out at (612) 961-9448 or Mark@MarkCallenderHomes.com. Let’s walk through your options based on your goals and numbers.