Buying, Managing, & Growing Rentals

[Satyam Mistry]

*Looking for input from experienced investors on current strategies I am using to acquire & manage more rentals.

Current Holdings of 8 Single Family Properties
- 4 of them bought in 2016 with 20% down & 15 year mortgages.
- 2 of them bought in 2019 in cash that I rehabbed & planning to refinance on secondary market when 6 month seasoning period hits in 1-2 months. Using the BRRRR strategy on these. May consider leaving 5-10% extra cash in as equity to lower the loan amount. Will amortize these over 30 years for better cash flow & take advantage of the low rates.
- 2 of them bought in 2020, 1 in cash due to how competitive the market was had to close with cash & am taking a commercial loan on it due to not wanting to wait 6 months on seasoning period to free up cash, 5 year ARM on 20 year amortization. On the other 1 purchased am putting 20% down & financing on secondary market.

Purchasing & Strategy
I have purchased all current properties through the MLS. I am not at a stage where I have an interest to market to off market motivated sellers. I am making efforts to increase my network in the area & develop relationships with buyers who are spending time & money on acquiring majority off market deals & have spoken to them about keeping me in mind if they are looking to sell something they just acquired without having to do any work on it for profit as this method should still be a better deal than buying that property through the MLS if it popped up there. I will continue to look at MLS listings as well, but feel developing these relationships with regular buyers will land me better deals occasionally. Am also working with an agent that specializes in short sales in case an opportunity there becomes available. I am wanting to utilize the 10 secondary market mortgage loans I can have so will mix in fixed rate 30 year amortizations until I hit those 10 then switch to commercial loans. Working on getting a line of credit set up with a commercial lender so I can close with cash on properties then finance out of them after closing.

Criteria on Properties
- Value add potential (open to turnkey as well if numbers make sense)
- Good area likely to appreciate
- Capturing 10% below market value
- Use the 1% rule as a general metric
- Look for about $300 cash flow on single family homes if amortized over 30 years with 5% capex, 5% maintenance, 5% vacancy expense included

Thank you for taking the time to read & offer your input.