Quantity Vs. Quality Of Rental Properties.

[Andrew Holmes]

I have often wondered why we do what we do? 

I have pondered these questions and I though it would be interesting to get thoughts from other investors. I would love to get your input specially if have a large portfolio of single family rentals. 

Seems like there are two schools of though when accumulating property portfolio on a larger scale. I mean 50 + up to 200 single family type of properties. Some people will Invest in what I will call challenging areas and build up quickly because it's easier to find inexpensive properties on the other hand the second school of though is to stay in good B areas and accumulate at a little slower pace. 

Personally I stick to the later approach of buying in B areas. Having said that we still manage to buy a decent amount of home a year in good solid areas. 

My style of investing is buy with minimum of 25 to 30% equity after rehab with a minimum cash flow of $ 400 per property. Then take cash flow and pay off all the properties. I don't really worry about appreciation because I can't control it. I don't believe in touching the cash flow for personal expenses. 

If there the property does not have a minimum of 25% equity after rehab I pass. I know my way of buying properties is a bit unorthodox but it work because in the Chicagoland area. I can find tons of deals. 

I guess my question to people that have managed to buy 50+ unit and held them for long period of time. Looking back at your investment period what is your perspective today?

What is your investment style?

Would you have invested any differently knowing what you know now?

What is the intended goal?

Do you invest for cashflow?

Or Get Properties paid off and then collect cash flow?

What is the long term exit strategy?

What is the plus or minus in your particular investment strategy?

Just looking to get some comment from people who have long term experience on the subject.