Using cash flowing SFH to get into apartments

[Jacob Grennell]

Hello everyone,

I'm curious if anyone has or is in the process of using SFM to get into apartment buildings.

I know alot of people that are getting SFM HOMES that cashflow 300-500 a month with tenants already in for around 100k. So I'm curious as to why people dont get like 10 of those with a 25% down within a 5 year timeline while still working their day job. The homes would be pretty simple to finance using a heloc from a personal residence or home equity loan. Once you get like two or three They would just reproduce down payments on their own. This would also boost your income allowing you to save more for an apartment complex. In my opinion you could save 100 to 250k for an apartment complex faster and it would boost your net worth and kind of start a track record for you to the bank and future investors. Use that money to get like a 10 or 20 unit. Go in add value you boost rents and cap rate and get out with a profit. You could then quit your day job to focus fully on apartments because you have your SFMs paying your expenses and you have the money from the previous deal to use on the next, then move up from there.

I know they are two separate ventures and dont work the same at all, however I think it's better then saving for seven to 10 years to do the same thing plus you would still have to work a full time job. Any opinions, advice positive or negative are welcomed and appreciated. Thanks for everyone time!