Best way to invest my capital

[Chad Lundquist]

Hey BP family, I have a question regarding the best way to allocate my financial resources. My wife and I have four (4) rental properties, three (3) of which are owned free & clear and we have approximately $375 - $400k in equity in them. They cash flow really well as is, but with interest rates still really low I'm wanting to put mortgages on them and pull out the equity to use to purchase more properties. After running the numbers we would still cashflow an average of $400 / month (+/-) per property (and that's including putting $100 / month per property into a maintenance & vacancy account). The first question I have is do you think that's a good idea, and secondly if we do pull the equity out what is the best strategy for allocating this capital? I was thinking that purchasing a larger multi-family property (10 - 30+ units) might be the best way to go as we've had success with this before, but I really wanted to get some feedback from others who have gone thru this previously or might want to partner. Also, my wife and I are in our early 50's (turning 50 this year for me, 51 for my wife) and we plan to be financially free and retired by 55. Any comments / suggestions would be welcomed and thanks in advance for your feedback.

[Andrew Hogan]

Congrats @Chad Lundquist on getting to this point! 

I've spoken to so many investors who are tired of the ups and downs of single-family homes. What if you spread that risk across a few hundred or even 1,000+ apartment units by investing passively with a proven operator? 

The aim would be to mitigate that risk and achieve better economies of scale and TRUE passive income by allowing someone else to do the risk. And you'd still be looking to double or better the 400k in ~5 years.

At that time you could reinvest your 800k-1M passively into deals netting 10% COC or 100k/year.