Restarting My Business

[Jeff Arndt]

Looking for guidance on where to go to next.  I currently own two rentals that if I were to sell, would net me about 50k in my pocket to use as working capital on another project.  The problem is they both cash flow positive and are a breeze to manage.  I also poured my blood sweat and tears into the second property as a live in renovation and I find it very hard to let it go.  

My problem is my business is moving too slow and I am only using my extra income from my job to purchase more rentals.  When I look at my 5 year goals versus my current pace, what I'm doing. just. ain't. cuttin. it........

My goal is to use a combination of other peoples money and my small ball of working capital to purchase distressed properties, rehab, then hold as rentals.  I want to then cash out refi on the back end and start the whole process all over again.

So, the age old question, if you could start all over what would you do?

Does anyone else implement this strategy and would you recommend it?  Should I continue the long guaranteed (well mostly) method of saving and scrimping to buy my properties with my own funds?  Or should I take on more work and make things happen quicker?

Much thanks in advance!

[Bill Gulley]

I didn't really have reserves in my first property, a good inspection and staying away from crappy properties goes a long way, lenders require reserves. In fact, I don't recall ever getting caught with any large bill on buying a property in the first 2/3 years. By large I mean no HVAC or roof issues. Rehabs are not unforeseen really, larger rehabs do need a cushion if you're tearing out walls, replacing cabinets and tops as little things happen.

While I may sound conservative, I'd have to say I'm not really, with more knowledge comes the ability to accept more risk, if you really get in a pinch, you should have an exit strategy, like selling it!

Each deal is different! :)