Trouble with Expansion

[Joseph Pobanz]

Hello All, 

I currently Own 4 Properties, 1 in Southern California (My Primary Residence), and 3 Multi Family, totaling 9 Units in Cleveland, Ohio (I have family there). I am looking to expand to more. My loan guy is telling me I can maybe buy one more property, between 200-300K. I have been buying these with 20% down conventional financing. My wife and I are currently in the process, of transferring these properties into our LLC. My goal for 2022 it so get to a total of 30 units. After I transfer all the properties into my LLC, does that free me up to acquire more personal loans, can I acquire them through my LLC or do I need 2 years of tax returns? what are my options? Any help is appreciated.

[Jonathan Greene]

You would need 2 years of tax returns to buy, using a mortgage, with an LLC in most cases but for some community banks that can qualify you as the LLC. If your loan guy is only telling you that you can get one more property at 200-300k, how are you going to go from 9 to 30 in one year and why? Just from those numbers, to get from 9 to 30 will take a lot of leverage that you might not have via traditional financing. 9 doors is solid, what's the rush? Are all of the multis you own performing at top rates or would the money be better spent making those units CapEx-proof for when you buy new units and won't have to worry about these?