Purchasing a rental portfolio

[Oscar Macal]

Hello all,

I've found a few single family portfolios ( ranging from 5 - 11 properties) that seem to be good deals. They are priced from $500 - $900k. And most are stating that the rents could be raised to increase cash flow.

So my question is, being that they are all in a portfolio, would raising the rents automatically increase the overall value of the portfolio since the properties within are residential? I understand that when dealing with commercial properties, simply raising the rent affects your CAP rate and therefore can increase the value of the commercial property. However, residential doesn't really work like that generally, but would it be different since they would all be in the portfolio?

My main concern would be being able to quickly increase value on portfolio to be able to cash out refi as much of my down payment money and get my money back out to purchase more properties instead of being tied up in the portfolio long term.

Hope my question makes sense. Any input is appreciated!

Oscar