Can I Win By Hitting Singles & Doubles Rather Than Home Runs?

[Brad Gibson]

Sorry for the baseball reference for those who don't like America's past time.

I'm a new investor and after putting in some time with books, blogs, this site, and Bigger Pockets podcasts, I took the plunge and since August have closed on 3 deals with a potential 4th in the works.  With a moment to reflect and the opportunity for some hindsight, I don't think I would call any one of my deals thus far a complete home run with respect to gaining immediate equity or monster cash flow.

My first deal is probably the laggard of the bunch.  I bought a 4 BR 2 BA in a college town about 2 hours away.  The home is/was in immaculate shape and in a very desirable school district.  The home is probably worth approximately 140k while I paid 127k not including closing.  There were no rehab expenses.  It rented on the day I closed for $1325 (approximately $150 less than I'd hoped), but the tenant is a good one that takes care of the property.  Monthly cash flow is $213 after management and expenses including repair & capex.  Perhaps not a strike out, but not a home run.  Maybe a single.

Deal number 2 I closed on in December.  It is a 2BR 1 BA that I got for 77k that is probably worth around 85k with some possible significant appreciation this year due to a heating up housing market.  I had to sink in about 5k in rehab to get it rent ready.  It rented on January 1st for what I asked -- $1050 per month & cash flows approximately $385 a month after all expenses including management (I'm self managing, but budgeting for management expenses).  Again, maybe a single.

Deal number 3, I closed on a couple of weeks ago.  It is a 3BR 1.5 BA that I paid 82.5k that is probably worth 119k after repairs.  This one was in rougher shape and is requiring approximately 10k in repairs and renovation to get rent ready.  I'm hoping to rent it for approximately $1300 per month and think it'll cash flow around $400 per month after all expenses.  Again, I'm self managing this one, but budgeting for management expenses.  Perhaps a double if it rents for what I expect.

I've got deal number four in the works, but will likely have to pause for 6 months or so to save up for another down payment and be sure I can meet the requirements for loan #5 (I have a mortgage on my current home).

So the point of the matter is... can you get there by hitting singles & doubles?  None of my deals are ones that are earth shaking.  A little equity & some cash flow each month.  Am I just being impatient & need to revise expectations?  Is it OK to be a light hitting second baseman rather than a power hitting left fielder?