Own 7 units, now what?

[Jerod Smith]

New to the site so be gentle with me... ;)

I own: 3, 1 bedroom rentals that produce $1300/month and 2 duplexes that produce $2100/month.  Positive cash flow is around $2130 (not factoring my personal mortgage of $755).

I love it so far, but have basically stepped into units that are in great shape and have long term tenants that pay on time.  No complaints.  I've also stayed in the smaller market of my home town and surrounding.  (25-40k population).

I'm ready to go a little deeper into this, but don't know if I should continue my strategy of finding clean, already rented, newer units OR try my hand at flipping to gain some cash flow.  I have about $48k in savings that can be used for more purchases, but with putting 20% down on each purchase, it will be gone quick.

How do I secure more units after my "20% down" money is all gone?

If flipping, should I look for foreclosures to purchase?

Is there a way to gain more capitol?

I'm curious what a few of you pro's would do if you were in my situation?  Feel free to ask me questions if more info is needed.  Thanks in advance!

Jerod in Oklahoma

[Gino Barbaro]

@Jerod Smith@Jake Stenziano

You're doing a great job, and investing for cash flow is key.  You can always look to partner up with someone who has capital, take a percent of the deal and earn an acquisition fee for putting the deal together.  Once you own the deal, charge a management fee to run the property and split the cash flow with your partner.  You can negotiate anything with a partner, but in the beginning you may have to take smaller equity in the deal to prove yourself.  Once you have a few properties and you are performing, investors will be seeking you out and you have more leverage when negotiating

Good Luck and keep growing!