New BP member looking for advice on property purchasing

[Travis Jacobs]

Hello fellow BPers! I just recently joined Bigger Pockets and after reading some of the articles and listening to multiple podcasts, I've been bitten by the RE bug and I'm ready to take my property investment portfolio to the next level.

I'm looking for advice or hole-poking in my near-term property purchase plan. I currently own two properties that are cash flowing well. Going forward, I plan to purchase one SFR annually (buy-and-hold) for the next three years and then transition into multifamily properties. Fortunately, my salary and low living expenses allow me to save for an approximate down payment of 30-35% for each annual property purchase in the area of the country I'm considering. As mentioned above, my current properties are cash flowing and I love getting those monthly rent checks while seeing appreciation. With 35% down on a 15-year note, I would expect decent cash flow and a rapid equity increase.

Any flaws with this plan? Recommendations? Anybody of the school of thought that the least amount down over the longest note is the best?

Thanks for responses in advance.

[Travis Jacobs]

Thanks Elliott! Your point about growing my portfolio as opposed to stabilizing and reducing debt makes sense. I'm naturally financially conservative and have an unhealthy fear about "good" debt and getting over-leveraged lol.

I've been sort of on the fence b/w going the slow and steady route towards a multifamily purchase or just jumping right in, but I believe I'm at the point of taking the multifamily plunge in about 9 months on a purchase that meets my criteria.

Most likely, I'll be looking at an OOS purchase in the Manhattan and Lawrence, KS area with a focus on renting to college students. These are the same areas where my two current properties are located and I have a pretty good feel for the RE and rental market. Decent sale prices but unfortunately, low inventory. I may have to do creative searching when the time comes.

Thanks again for your advice and potential plans that I can use. Good stuff!