SFR buy and hold investors who currently holds 5 - 10 SFR investments

[James Park]

Right now i just have two investment properties that i bought before 2006, and haven't purchased any new investment properties except for my new primary residence I purchased last here.

My investment goal is to purchase one SFR rental every year for the next 8 years so that the income generated from my 10 SFRs would replace my annual salary by 2020. I was told by my mortgage broker that i can probably borrow for 2 more rental homes with conventional loans but will be required to put down 25%. In today's tight lending environment, is there any creative ways I can still finance with 10% down or are those days long gone and impossible to do? How do you go about getting financing for your 6th - 10th SFR rentals?

My idealistic 8 year business plan assumes that i can purchase a $250,000 SFR at a purchase price at a 10% discount of $225,000 with 80 - 90% leverage every year. For those of you investors who specialize in investing in SFRs and have loan balances between $1 million to $3 million. What strategies did you pursue to get to this level of financing? How difficult is it in today's environment to get a loan more than $1,000,000 for 3-4 SFR investments?

Thanks

[James Park]

Nathan,
SFRs are just what i am comfortable with. It is the land that goes up in value not the house. I believe there is more appreciation potential on an SFR over the next 8-10 than multi-family. However, cash flow is probably much better on an multi-family. Also with muti-family units you are most likely dealing with a savvy investor like yourself whereas in SFRs you are probably dealing with non-investor sellers.

I think that SFR, generally speaking are easier to manage on your own with a full time job.