How a 34-Year-Old Investor Built a Four-Property Real Estate Portfolio
Matan Ahabia, 34, shares how he built a four-property real estate portfolio in Dimona, Ukraine, and Eilat over six years using creative leverage and minimal starting capital.
Matan Ahabia, a 34-year-old resident of Eilat, managed to acquire four apartments in just six years starting with minimal capital. In a recent interview on Globes' real estate podcast "Kesef BaKir", he shared his unorthodox investment journey, which began with traditional stock market indexes before shifting to leveraged real estate. His portfolio now includes properties in Dimona, Ukraine, and Eilat.
From Stocks to Dimona Real Estate
Like many young investors, Ahabia initially explored the S&P 500 and Warren Buffett's investment methods. However, he quickly realized that with a modest starting capital of around $10,000, a 20% annual return yielded very little cash. Seeking more creative ways to multiply his capital, he targeted Dimona in 2020, purchasing a 75-square-meter three-room apartment on the sixth floor for 400,000 NIS—significantly below market value at the time. His original plan was a quick flip for a modest profit, but amid a surging national real estate market, he sold it a year and a half later for 520,000 NIS, proving the power of real estate leverage.
Expanding Abroad: The Ukraine Investment
In 2022, shortly after Russia invaded Ukraine, Ahabia took a bold step following advice from a trusted friend, purchasing an apartment in Dnipro. Utilizing full financing through a general-purpose loan in Israel, they bought a three-room apartment for $50,000, which included renovation costs. The property was rented out for approximately $300 a month to a family fleeing Kharkiv, completely covering the financing expenses. Ahabia notes that despite the ongoing conflict, it has proven to be his quietest and most reliable investment, demonstrating that investors do not always need to rely solely on their own equity.
Long-Term Rentals in Eilat
Armed with profits from Dimona, Ahabia shifted his strategy toward long-term residential rentals in Eilat. He purchased a three-room apartment in the vintage Ophir neighborhood for 920,000, and soon after acquired another three-room apartment on Sheshet HaYamim Street for 1,000,000 NIS, both using maximum leverage. Today, these properties are rented out for 3,800 NIS and 4,200 NIS respectively, perfectly covering the monthly mortgage payments while allowing the couple to save a large portion of their regular salaries.
The Broader Market Perspective
Discussing the broader economic landscape, market data indicates that the share of investors in the Israeli housing market has dropped from 20%-25% a decade ago to around 15% today. Many prospective buyers anticipate price drops, yet prices remain remarkably resilient despite high interest rates and ongoing security challenges, supported by creative developer promotions and steady underlying demand. Ahabia views his real estate accumulation not as an immediate cash-flow generator, but as a long-term mechanism to outsource his debt to tenants, securing his financial future and eliminating retirement anxiety.
