IT worker reveals how he purchased eight properties in under three years

A father-of-two has revealed how he grew his property worth by $4.9 million, five years after arriving in Australia with just $7000 to his name.

A migrant who came to Australia six years ago has revealed how he overcame job losses and $20,000 worth of debt to purchase seven homes in just 18 months.

On his son’s second birthday in July 2017, Rohit Gehlot made the heartbreaking but necessary journey from India to Sydney in search for a better life for his family and to progress his career.

He arrived with $7000 to his name, was unemployed and his only connection in the country was his cousin.

The weeks that followed involved multiple failed job offers and heartache as Mr Gehlot missed his family.

Fortunately, his streak of bad luck was short-lived, with the father-of-two finally securing a position on the same day he booked tickets for his wife and children to come to Australia.

“I was lucky enough to get an apartment leased – which was overpriced but new – and from the day they landed, our life started,” he told news.com.au.

“I remember buying the furniture two days before their arrival and assembling it all a night prior to them arriving.”

The Gehlot family moved to Australia in 2017. Picture: Supplied

Ten days after his family arrived, Mr Gehlot started working for Deutsche Bank while his wife looked after his children at home.

Living expenses and necessities like a car ate away at the father’s income and savings, forcing Mr Gehlot to seek a $20,000 loan from his cousin.

As the sole income earner for his family, Mr Gehlot worked tirelessly to support them as they adjusted to the Australian way of life.

“Unfortunately in December 2017, after only being a few months in the job, I was asked to leave by my company as the bank was cutting down their consultant costs and I was back in the market again,” he said.

“Luckily, they gave me three months to find a job and I was able to secure a contracting role in February 2018 at Commonwealth Bank.”

During this time, Mr Gehlot was slowly paying back the money he owed his cousin while paying rent on his family’s apartment.

It took him until March 2018 to clear the debt, which the father said was a relief.

In the following months, Mr Gehlot progressed in his role which helped him “transform” his financial situation.

“(At the time) my office colleagues and neighbours kept talking about property purchases due to APRA lending tightening,” he said.

Mr Gehlot learnt he needed a 10 per cent deposit to buy his first home, which he was able to secure in early 2019 after withdrawing some money from his “provident fund” – similar to superannuation – in India.

With the assistance of a mortgage broker, Mr Gehlot received pre-approval for a loan in addition to the $26,000 from his provident fund and savings from job for a deposit.

“I ended up buying our first home in Kellyville for $900,000. I signed the contract in May 2019, two days before the election result and nine days before Sydney Metro Northwest started operations,” Mr Gehlot recalled.

“Timings worked out perfectly well in my favour and from August 2019, we started seeing rate cuts which shot the market up again.”

Mr Gehlot and his wife own eight homes, seven of which are investments. Picture: Supplied

In November that year, Mr Gehlot scored a permanent role with his employer. While it came with a pay cut, he was grateful for its stability, particularly given the timing of the pandemic.

“(When) Covid hit us in March 2020 and we started working from home, I got spare time in the mornings and evenings as I was not commuting to the office anymore,” he said.

“I started going for long walks and listening to podcasts, then got more interested and read a few books, then started following many property gurus to understand their perspective.”

It inspired him to gauge a better understanding of the property market which motivated the father to seek alternative lending opportunities.

“(A) broker from the eastern suburbs in Sydney got in touch with me and told me that by using a non-banking lender, I could borrow around $400,000 due to interest rates dropping,” he said.

After some negotiating with real estate agents, Mr Gehlot was able to purchase his first investment property in Brisbane in January 2021, which he leased for $430 a week.

At this time, Mr Gehlot’s wife was one month into a casual job. With her earnings and another loan, the couple were able to purchase a second investment property in July valued at $310,000 which they later leased for $380 a week.

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Mr Gehlot has eight properties across three states. Picture: Supplied

Mr Gehlot’s borrowing capacity meant he could purchase another two properties in Perth in the months that followed which he leased for $450 a week.

“For all these deposits, I kept increasing my loan at Kellyville and withdrew some equity from my first investment property in Brisbane which had done well,” Mr Gehlot said.

“All these purchases were possible because the high cash flows assisted in the serviceability.”

The property investor then purchased another three homes across Queensland between March 2022 and June 2022 using a “discretionary trust structure” technique with the help of a mortgage expert.

By purchasing an investment property through a discretionary trust, investors are said to receive greater asset protection, flexibility on income distribution and pay less tax on negative gearing, according to boutique tax advisory Prism Accounting.

“With this, I ended up buying seven properties between Jan 2021 – June 2022, out of which six properties were in the same financial year,” Mr Gehlot said.

“The total worth of the portfolio is around $4.9 million and mortgage sits around $3.2 million.”

Between the seven rental properties, Mr Gehlot and his wife receive a rental income of $3670 a week.

Mr Gehlot is now working as an engineering manager in the technology sector, and hopes that he can use his story to inspire other people who think they can’t afford to buy a home to get into the property market.

“I aspire to leave my full time job which pays my bills for something which I am passionate about, helping people,” he said.

One of Mr Gehlot's Queensland rentals. Picture: Supplied

The secrets to success

Mr Gehlot said having the right mindset and a network of people can help any property investor succeed in their property buying journey.

“My mantra is either get educated or hire a professional, nothing in between. The cost of making a mistake is huge in real estate, while ignoring opportunity will cost you altogether,” he said.

The father said cash flow and focusing on capital growth are the main areas a successful investor should focus on if they want to build a sustainable and sizeable portfolio.

“Good cash flow will make sure that your property portfolio is sustainable without too many compromises on your lifestyle and also helps you in your borrowing capacity as the rental income gets added to your income for servicing the loan,” he said.

“Meanwhile, good capital growth will help you increase your net worth faster and also helps you with equity to be used as a deposit for your next purchase.”

Mr Gehlot also said there are three other factors critical to ensuring financial success, which includes buying the right asset, in an appropriate location at the correct time.

“Time the market correctly and then hold off the asset long enough to give you good rewards,” he said.

“‘Timing the market’ and ‘time in the market’, both are important.”

One of the properties Mr Gehlot purchased in Perth. Picture: Supplied

Tips for first-home buyers

While Mr Gehlot owns eight properties now, it’s important to remember that he was a first-home buyer in Australia four years ago.

From personal experience the property investor said speaking to a professional is the best way to understand your options.

“If today is not the right time to start, at least you know where the gaps you need to bridge are and can start working towards (buying a home),” he said.

The Investor Aid founder said assessing your financial situation first is the most crucial step, as it enables you to set up a plan of attack on how you can build and progress its value.

“People can really do big in real estate by starting small,” Mr Gehlot said.

Originally published as IT worker reveals how he purchased eight properties in under three years