buy and hold-how to expand

[Rigo V.]

Hello everyone, I am new to the site but very excited to get started. I am looking to get my first investment buy and hold property soon.

My question is how do investors who buy and hold properties manage to expand their portfolio's quickly? (3-5 years) 

To put some numbers to my question. I am looking at a MFH that has 3 units and selling for 199K. The 20% down payment required would be about 40K. It is a turnkey property. I expect that the property will net about 8k in positive cashflow per year after all expenses including property management. At this rate it would take me 5 years to be able to expand to a second MFH.

What can I do to speed up that time to lets say a year or two? Should I be buying homes that need repair so I can build equity with the rehab and cash out refinance for the next? How can I do it with turnkey properties?

-Thanks

[Robert Gilstrap]

@Rigo V. there are dozens of ways to buy properties without utilizing a ton of cash. That being said; there is no shortage of money out there to finance every single deal IF the deal is good enough. 

You could looko at buying subject to, focusing on owner financing, rehab and flips to build cash reserves, etc.  Don't get discouraged because deals are around every corner. You just gotta be out there looking and more importantly making offers.