Accumulating Rental Properties

[Andrew Merritt]

I'm working on finding a rental property as my first deal.  For right now, I'm focusing on pretty much turn-key properties.  If I stick with this and spend all of my money allocated for real estate on this first property, how would I go about getting my next property (and more after that)?  If I was to get a loan for 80-90% of the equity in the house, I'd quickly reach the point of diminishing returns and I might have a 'seasoning period' to take into account as well.  It seems like this isn't the best way to build a portfolio.  Or it would just take forever to save up enough to buy the next house each time (depending on my savings rate, of course).  

I have no experience w/ renovations, but I feel like BRRRR is the only way to build a portfolio in a reasonable amount of time.

[Wade Sikkink]

Real estate is a get rich slowly game.  The vast majority of what you do will take some time to come to fruition.  Eventually, things can start to snowball, but for most regular people trying to get into the game you just have to start somewhere, then keep chipping away at it.

If you have enough cash to get a property or two going, do that.  You might also be able to use equity in your personal residence as collateral for a down payment on another property.  Then it may take a couple years for things to build up enough to get your next property.  Keep doing that and one day you'll wake up and have a nice portfolio.

I'd make a lousy guru, because I won't tell you that you can get rich with no money and no experience.  I'm just trying to give you my realistic view.  Most of what you see out there about people becoming millionaires overnight simply isn't true, or they are very rare cases that have less chance of being repeated than buying lottery tickets.

Don't mean to be a downer, just a realist.  Good luck.