Wait and see or keep on going?

[Garrett Fulton]

Hello BP!!

After 4 months of reading everything I could on this site, in March I finally took the plunge and bought my first rental property in Baltimore Md. After getting the property leased up( using property manager) with section 8 tenants in mid April, I purchased another property in the beginning of May and am just finishing up the drawn out section 8 process (found the tenant, inspection complete. Just waiting on the rent amount to come back from the housing authority.)

I'd definitely say that I have the itch and am ready to start looking for my third property... However others in my family and friend circle(who are more conservative in their investing) are advising me against it.

I'd like to get BP opinions/ experience. Have you any advice for a newish investor who is torn between playing it safe(waiting for a certain period before acquiring any more) or continuing until I reach my goal.

Below is some info so that you might get a better understanding of my goals and where I am coming from.

My goal: I am currently one full year out of college working as a marine engineer aboard a ship. I am away from home for half the year :( In 10 years I'd like 20 properties or enough passive income so that I can stay home full time and possibly start a family. I'd still work ( become a real estate agent or continuing in the field of engineering), however id like a safety net!

Current properties

#1) 2 bed 1 bath totally rehabbed (new mechanicals and 4 year old roof)

Purchase price: 55k

Rent: 1174

50% rule cashflow: 284 per month

#2 4 bed 2 bath totally rehabbed ( new hvac, appliances, and mechanicals)

Purchase price: 95k

Projected rent: 1700

50% rule cashflow: 250 per month

Both properties are financed through conventional 30 year loans. According to my lender i qualify for one more conventional loan up to 95k until I get a raise or show 2 years w2 income on current properties. If I were to purchase another property between 70k-100k with (20% down payment and closing costs), I'd only have about $12,000 in reserves for three properties.

Thank you for reading what seems to me a long, confusing and boring post! However, I would very much appreciate some thoughts on weather I should push forward or hold steady for the time being. Any experience, advice, warnings and the like will be greatly received!