Future investment growth

[Christopher Fougere]

Jan 2015 my wife and I decided to commit some savings and use the equity in our home to acquire a rental property (SFH) in the KC area. Since we are in Vermont we found a broker we could trust and in the past 2 years have managed to purchase 5 properties.

We are at the point now where we are trying to figure out what our next step should be?  The rentals are cashflowing - we had some bumps along the way, but the choice to go with lower risk investments so far has been a good one.

I'm looking at purchasing a duplex and while the numbers look great, the cost to play does not. I'm looking at needing to bring 40k to close which is over twice what I usually have to bring (25% and 2 doors I get it) My question is how do people get past this hurdle? Buy and flip for cash? Sell an asset? Partner? Other? Does it make sense to skip this expensive purchase and go with another SFH, and then another in a few months? A 40k cash to close will stretch what I am willing to spend. I can swing it, and will enjoy solid returns but it will leave me less comfortable than I enjoy being, and is that worth it?

This is not a full time gig for us, we are both professionals with solid incomes, perhaps I should not be rushing things, however I'd like to grow sooner rather than later while I can take advantage of the market and cheap money.

What do you think?