Advice on how to acquire 2-4 cash flowing properties each year?

Question

Hi BiggerPockets Community,

I'm a newbie investor who lives in a very expensive market here in NY and has a full-time job. I've recently bought a SFH turnkey property from out of state last year just to get into the RE game since I've been stuck into analysis paralysis. But lately, I've been thinking that I wanted to do more than just investing on TK properties and had recently set a goal to acquire at least 2 cash flowing properties each year. The only problem is that I'm not so sure how's I'm going to do that or what to do next. You see, I'm a very disciplined and persistent person. If I could only get a clear idea of what to do next or what I should be doing now, I know that I will stick to it until I get my desired result, as long as I know that what I'm doing is bringing me a little closer to where I'd like to be in the future, which is financial freedom just like everybody else. I'm open to the idea of both active and passive investing, I just really need some guidance.

Would you care to share some of your knowledge or experiences when you were just starting out, and was probably on the same boat as I am now? What did you end up doing that made you successful now? What would you suggest that I do next if you were me? Your advice, knowledge and experiences are much appreciated! Thank you so much in advance!

Andrew Freed · Answer

@Cherry Montesa - I can relate. I have very much the same goals, acquire two cash flowing properties each year for the next 10 years and obtain financial freedom. The strategy I am currently employing is to house hack a multi each year and buy a multifamily investment property each year, be it a syndication or a local piece of real estate. I am doing this via a few different methods:

1. Utilize low down payment owner occupied loans to get into a new multi each year. FHA is one option, VA is another. I am currently planning on utilizing a small credit unions 5% down conventional product since I already used my FHA loan.

2. Obtain a HELOC on each property I owner occupy prior to leaving to utilize the equity in each property to scale. They offer up to 100% HELOCS.

3. Along with having a strong W2, look for ways to increase earning such as a side hustle. I am currently a real estate agent.

4. Network with syndicators - You can get into cash flowing syndications for as little as $25K which return close to 13-15% annually as well as monthly or quarterly cash distributions. For a non accredited investor like myself, I'm only eligible to invest in a 506(b) fund. As a result, the syndicator needs to be in my network for me to find out about the offering.

5. Daily Discipline - Each day, spend at least 2 hours on self care and self improvement. The miracle morning is a great option, but have a daily routine of becoming a better version of yourself every day.

6. Pick a Niche - Find you're niche and let everyone know that's what you do. For instance, I focus on 2+ multi's in Worcester MA. I feel like when you focus on becoming an expert about a specific niche in the market, opportunities tend to come to you.

Those are some strategies I've used that's had success. Good luck on your journey!

Nathan Murith · Answer

@Cherry Montesa congratulations on doing the work and posting here to keep your momentum going. I'd be happy to chat about all things we did when we started to keep the momentum and motivation, please do not hesitate to DM me if you want to go into more detail, I think it will be hard to convey all the things in one single post here.

One things that I have learned to appreciate with real estate is: patience, long-game, daily discipline, hard work, and network. Like they all love to say, it is not a get rich quick scheme, it is a get rich for sure.

happy to share all the tools, tips, tricks, resources, info, etc so please reach out if interested!

Jared Hottle · Answer

Do the most you can consistently each day which is probably much less than you think. Drive for dollars or walk for dollars is what I like to do. Find houses needing work or have long grass in yards or if you want small multifamily look for places that have 2 gas meters or electric meters. write down addresses, look up owners and try to contact one of them every day. While doing that read the book how to win friends and influence people and use those principles when you get someone on the phone or meet them face-to-face. You will be surprised how the opportunities flow I believe especially because it only has to work a couple times

Stacey Weihe · Answer

Hi Cherry,

I'm with you! I live in Brooklyn. I bought two brownstones in Bed-Stuy before it gentrified so I am somewhat experienced in New York real estate and experienced in being a hands on landlord. But I can't afford to invest here anymore, the market it so out of control. I too, am looking for opportunities for single or multi families out of state. I just can't figure out where it should be and I somehow still want it to be close enough that I can drive to it in a half day or so. I haven't attended any meetups here yet, but I think it's a good idea. Maybe we can connect and attend one!

Brock Mogensen · Answer

Go all in on education and networking.  Learn as much as you can every day about the basics through books, podcasts, and courses.  Simultaneously start attending local real estate meetups.  Do that consistently for 6 months and you will be much more prepared.  Networking at local meetups is a great way to find good deals too.

Miles Fabishak · Answer

Just wanted to say this is such a great thread! Very inspiring for a fellow investor.

Advice on how to acquire 2-4 cash flowing properties each year?

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