4 Years Later: My first Bigger Pockets post

[Johnoson Crutchfield]

I just looked at my first bigger pockets post.   OMG.  Thank God for how much I've grown up!  5 Years Ago I owned 5 properties lol...... Now I own so many I'm embarrassed.  Blessed to be able answer any questions new folks may have.  I wanted to answer the question below as if I was new person with what I know.  My solution, scale as quickly as possible.  Make sure the deal pays for any interest you're paying.  Cash out refi as often as possible to grow.  High interest debt is really risky, but a small portfolio is even risker.  It makes you want to quit at the sign of a major maintenance issue or new government regulation.  The collective rent from a larger portfolio is so worth it.  Keep pushing guy!

POST FROM 5 YEARS AGO

Help, I'm going to give as many details as possible because I'm just getting started and could use some good advice. I currently own 5 properties including my primary. 2 of them I just purchased as bad shape rehabs that I wanted to fix and rent out, using the BRRR strategy. I had no cash so I put all of the repairs and purchases on a 50k loan at 25% and 50k credit cards at 25%. So now I am 100,000 dollars in debt. The properties appraise for 75k and 100k, for a total of 175,000, and my bank just gave me a check for 50k to refi the first property. What do I do now? Do I pay off the high-interest loan, then take the other refi and pay off the credit cards? Do I split up the money in some way, keep the high-interest loans and acquire more properties? I can't help but feel like having the high-interest debt is really risky. I need ideas and feedback. The collective rents from the two properties will be $1600/month.