Advise for the new investor

[Roger Andrews]

NewBee FEELING GROOVY... Yes I know how corny the title for this post is. Especially if your my age or a bit older and grew up on hearing the word “groovy” uttered over and over by Marsha or Greg referring to their new pair bell bottom pants on an episode of the Brady Bunch back in the day. But for me it’s about the “grove” I’ve put myself in by leaping into this real estate game with both feet. No platform shoes though. Quick background. I’m an commercial artist who has been fortunate enough to have built a career in Illustration and design for the last couple of decades. Luckily I’ve had and continue to have some prominent clients in the fields of advertising, toys, video games, etc. that have made me pretty successful in that world. There lies the rub though, they have “made me” successful. As greatful as I am to do what I love for a living I recently realized how little control one has over their future if the present is governed only by your clients needs and your ability to deliver on them. So enters the business mindset and philosophies of Robert Kiyosaki plus the pivotal discovery of the Bigger Pockets podcast / website which I am now an active pro member. Thank you Brandon. My point. Through these two events plus and enormous rabbit hole tumble into real estate advise books like the ones on this website (thanks again Brandon) along with an avalanche of YouTube videos and other business self help books like “The 4-Hour Work Week” I’ve developed the confidence and put in place the systems to help pull the trigger on my first two buy and hold rental property deals. Both in Massachusetts. Here are the numbers: * Deal #1 (mid 2017) purchased 3 family house aka “tri-plex” in a fairly desirable part of the city on a FHA loan. After a year remaining balance $250k. ARV $290k. Monthly rents currently total $2900. Using the Bigger Pockets model a Cash Flow of $600 per month. * Deal #2 (mid 2018) purchased 3 family This time with 25% down of my personal funds. Financing $195k. ARV $270k. Monthly rents currently $2550. Using the Bigger Pockets model a Cash Flow of $700 per month. Now here is where the “groovyness” comes in. Both 3 unit houses cash flowed right out the gates and will continue to profit greater as I improve the places and raise the rents. Thankfully after deep analysis of numbers and careful inspection of the property and most importantly the hiring of quality contractors I realized... eureka I can do this! Most of the tenants I have now are pretty good. Not perfect of course, but I’m adapting to dealing with their issues and putting in place system to re-train their approach to dealing with a responsible landlord. I even have one tenant who pays early using Zelle. Ok here goes the rub. I have been continuously scouting some new deals in my city on the MLS. I have even linked up some wonderful people who will have some more multi family houses that are coming up for sale early 2019. My question moving forward is what the best strategy for growth if your in my position? I do have some reserves but I’d like save for rainy day funding and to be able to show that I have some cash assets to lenders. There is some equity is both my properties. I have a long term stable six figure income thru my career. I just need advise on how best to proceed in order and seize these opportunities? Keep it groovy though...?