3 Year Experiences,Stuck on next step of my REI development

[Justin Bettano]

Hey BP Community. 

I have been involved in REI investing for 3 years.

Property 1: Rental Multi 

I started out with a 2 unit multi north of Boston. Which I currently still hold, and cash flow decently. Value comps are about 540,000 my debt is around 385,000. my monthly net CF I’d about 1,500 haven’t raised the larger u its rent in over a year due to wanting to retain the current occupants. 

Property 2: Fix and flip 

The second property in my REI journey was a 3 way partnership deal. On a Boston south shore single family. It was intended as a fix and flip, and our original exit strategy was reached. we bought with hard money then did a refi to convential because repairs became drawn out and rented for some cf to by is time. we ended up selling for 405,000 and our loan balance was 235,000. After taxes I netted about 40,000 after about a year of work and management.

Property 3: Primary Fixer upper / home. 

My gf and I bought a primary North of Boston. Have put some work into it, refinished bathroom, revamped landscaping, new front and back porches. Finished one of the bedrooms that was in dated and aged shape. This home I view as a place to live and build a family for now until opportunity presents itself. 

My gf and I have a household w2 income of 170,000, before my income from my rental property 

My ultimate question is what should I do. I’ve been thinking going the second home/ mid term/ str route. another thought I have is venture further into a rental property but I know with rates, finding a deal that would cash flow would be tough. 

Any pointer, expertise or discussion would be greatly appreciated ! 

[Justin Bettano]

Quote from @Nathan Gesner:

Quote from @Justin Bettano:

1. Learn how to manage better. You aren't raising rents because you don't want to lose your tenants? That's a rookie mistake. There are great tenants willing to pay market rate. By charging market rate, you earn enough that you can afford to maintain the property, which attracts quality renters willing to pay market rates. If you get behind, you'll start neglecting maintenance and/or attracting lower-quality renters.

2. The hard path is the one least traveled and most rewarding. Don't give up on growth just because it's hard.

Thanks Nathan!