Stabilizing My Rental Portfolio in Memphis

[Arron Paulino]

Hello,

I am now 3 years into real estate investing from starting during the pandemic and have been able to obtain 7 SFRs into my rental portfolio all using the BRRRR strategy and now closing in on my 8th property maybe even my 9th fingers crossed. I am looking to make sure that everything is stabilized in terms of making sure that I cashflow positive each month. My goal is to match my monthly W2 income by the end of the year and eventually surpass it by doubling, tripling, or more as my rental portfolio continues to grow. Is it wise to pull out any equity in these properties or leave them as is? Also, do I need to transfer these into an LLC in Memphis to free up my ability to continue to use conventional financing? Right now, I am slowing down in terms of scaling since I've been relying on my own funds rather than using OPM to grow quicker. I currently work in the golf industry so I've connected with high-worth individuals, but don't really know how to word what I do in real estate to convert them into private lenders.

I also heard that the seasoning period for Freddie and Fannie loans has changed from 6 months to 12 months. Could someone please explain what this means to the BRRRR strategy? Is this a big deal in cash-out refinancing? One of my properties is close to the former 6-month seasoning period so I am curious and want to be prepared for the next steps.

Eventually, I'd like to delve into multifamily to scale. As much as I'd like to keep my long-term SFRs, I understand I may need to trade them in for bigger properties down the road. Looking forward to hearing from the community!