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Updated almost 6 years ago, 02/11/2019
Would this deal likely hurt me or help me?
BP friends, I'd like some advice on how others have handled situations like mine, or your hypothetical "what if's" if you were in my shoes.
After reading countless books, listening to thousands of hours of podcasts, attending meetings and everything else it takes to get a good basic education on real estate investing over the last several years, I was getting nowhere and still struggled to find time for my family. So I left a W2 job recently to solely focus on this passion. (I know, some will say I'm crazy)
I've been working hard to move toward my goal of a 50+ unit rental portfolio, and I've been doing a pretty decent job of locating properties that would have good cash flow and having an opportunity to purchase them. But my biggest challenges have been these two things: 1) having an experienced resource to bounce my ideas off of who have the same or similar goals, to be sure I'm correct in my analysis and 2) funds.
Although I have helped others, mainly companies, obtain rentals, I have yet to land my own since I am struggling to land a deal without a current W2 income myself. I've tried a few times to approach the idea of seller-financing or some other form of creative finance, but haven't had any luck. It seems to come back to either no W2 job, or not able to provide a large enough lump sum up front.
That said, I am aware of a rental portfolio of 20+ SFR units in the Kansas City area with each property having a 1+ percent rule rental rate, that is available to purchase and not currently on the market. I would love to have them to greatly expedite my portfolio growth! And I know of some good property management companies in the area that could manage them if I chose not to.
But going back to my biggest issues of needing someone to bounce ideas off of, and a way to obtain the funds necessary to do the purchase, should I even bother going after this deal? Or should I have the "slow and steady" mindset that so many talk about as being the best way to grow a portfolio? I am eager to get that many properties at once, especially since this is my passion and I'm not sure how often an opportuny like this becomes available, but at the same time I don't want to do something dumb because I moved too fast. And as I mentioned, I recognized that I went so long getting nowhere before, so now I have a ton of motivation to start landing deals, even if it's partnering, to get the track record as proof for future deals.
Thoughts on the 20 units, or any other tidbits of advice please?