Going forward strategies

[Travis Beehler]

Hey all!

So, I've got 7 rentals at the moment, all leased out, going well, profiting about $2,500 a month net.  My original plan was to take the profit, plus $1,000 a month of my own, and pay down various debt (Car, credit cards, etc.)  All rentals are commercially financed, and are on 3 year terms.

However, going forward, obviously I'd like to get them on longer term loans (15-30 year if possible).

So, my question is, I've found hard money lenders, longer term lenders, etc, have any of use used HML folks to purchase, thrown in a few bucks into rehab, then financed it out with a long term lender, and kept your total out of pocket when it's all said and done to a minimum? If so, how'd it go? What are some of the pitfalls you ran into?

At the moment, I've got a ton of debt I've got to get rid of (Thanks Obamacare!), so I'd like to be able to not have to tap into that $2,500 a month profit if I can afford to.  I do make a good living, so I can bring some cash to the table.

Once debt is paid off, then I'll roll the monthly profits into buying more and more SFH's.

Am I mistaken in this might be a good way to pick up more and more properties with minimum cash out of pocket (once it's been financed under a loan from the long term lender)?  Is there a better way that people like?

[Travis Beehler]

Nope.  In face, I only found 1 lender who'll do 30 year fixed, but they are wanting a LOT higher interest rate (8.25%), and they have a high closing costs/fees (about $3,000), and they won't touch properties below $100k.