I'm at 11 units, now what? Thoughts welcomed on what to do NEXT

[Jonathan Li]

Hello!

First off, huge thanks to the BiggerPockets community, podcasts, tools and depth of thread topics; I wouldn't have gotten nearly anywhere close to where I am without the existence of BiggerPockets. 

I currently work a full-time job in the engineering/construction industry in Kansas City, MO. I grew my net worth through saving and stock growth throughout the years. I have always been an entrepreneurial thinker who was always experimenting interests in all sorts of hobbies and activities to reach financial independence for me and my future family. 2018 was the year to do something much different. I stumbled upon a few REI videos on YouTube, a few videos turned into probably all the videos YouTube could offer on REI. Then I purchased and read Brandon Turner's book. I took action and went PRO on BP, and it's been quite a ride since then. 

Eight months ago, I decided to purchase my first investment property, a turn-key, tenant occupied duplex. No issues, tenants paid, cash flowed, minimal service calls! 

The following milestones took place since then on weekdays after work and on weekends: 

May - purchase of second duplex

June - purchase of third duplex 

July - purchase of a triplex

October - purchase of forth duplex 

I financed all the properties through conventional 25%-down loans and the properties are more or less considered turn-key properties with minor work needed. The reason this strategy started developed in my mind was that I didn't want to 'risk' running into a construction/rehab nightmare with uncertainty. no BRRRR for me :(. I also didn't have the time to set aside to do so (full-time job requires a solid 40-60 hrs/week).

I have established that my goal is to one day own 50 units or $9,000/mo ($180/mo/unit) in net cash flow to reach financial independence. 

Lately, I have been feeling lost for next and best steps forward. Although one can qualify for up to 10 conventional loans, I am taking second thoughts on the large down payments. 

- Do I keep buying turn-key duplexes if they appear to be a great deal? 

- or do I save my money to buy a 6 or 8-unit apartment building? 

- What are other financing methods which require smaller down payments and allow me to scale quicker? 

Thank you in advance for all your input! 

[Jerry W.]

@Jonathan Li, welcome to BP. You have done an amazing amount of action in a VERY short time. I can only give advice based upon my personal experience. One you might take a short breather and see how things work. Spend some time building your systems to handle the increased volume. Make sure you have good sources for plumbers, electricians, handymen, etc. I myself tend to buy distressed properties and fix them up to rent, mostly because cash flow stinks in my area. Buying houses in my area ready to rent in most cases would result in negative cash flow. You might consider a 4 plex next. it is a halfway step between duplexes and apartment buildings. You can still use conventional financing. See how managing that goes. Let us know if you manage yourself and how your systems are set up as well. Depending on how things go you can decide if you want a 6 or 10 or larger commercial property. You might actually go one full year to make sure your rental income will count for purposes of figuring your income to afford more loans. Your DTI will need to be looked at too.