Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 6 years ago,
I'm at 11 units, now what? Thoughts welcomed on what to do NEXT
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!