How to Expand your Real Estate Portfolio without Running Out of Financing

[Dario De Pasquale]

Hello there,

I am an experienced investor in STR. I own 3 properties and rental arbitrage 1 more with a net income of $400,000.

But I am a newbie in LTR. I am looking to diversify and derisk my portfolio by buying and holding out-of-state LTR.

I have about $200k of cash flow to reinvest yearly. I would like to find a city to invest in, visit it, build the core four, and buy 4 to 12-unit multifamily each year. I would like properties with some cash flow and some potential for appreciation. I would be putting 20-25% down and use a loan to get more for my money. Considering I don't have the time to get off-market deals, I am not expecting amazing cash flow, maybe $100-200 per unit.

With this strategy wouldn't I quickly stop qualifying for a conventional mortgage? Would I then start applying for DSCR loans?

Is that easy to do and keep doing every year or will I hit a wall?

Thanks for any input!

[Mike Paolucci]

Quote from @Dario De Pasquale:

Hello there,

I am an experienced investor in STR. I own 3 properties and rental arbitrage 1 more with a net income of $400,000.

But I am a newbie in LTR. I am looking to diversify and derisk my portfolio by buying and holding out-of-state LTR.

With your desire to find some cashflow and appreciation via LTR, then I would recommend checking out some of the Ohio markets like Columbus. You'll see some solid appreciation here. Lot of big name companies are investing in the area and population is steadily growing. 

I started investing as an OOS investor here back in 2021 and haven't been disappointed with my decision. 

Happy to answer any questions you might have.