How do I scale up my portfolio?

Question

I currently have two single-family long term rentals, both cashflowing $1000+/mo. And I have one single-family short term rental on Airbnb/vrbo that cashflows ~$3000/mo after expenses. I know I can replicate these numbers if I had more doors, but my current bottleneck is the amount of liquid cash it would take to put 25%+ down for the next property.

I need to get creative or find some private funding. Seeking any advice.

I need to get creative or find some private funding.  Seeking any advice.

Joe Villeneuve · Answer

You could be missing the obvious.  If you say you should be able to find more of these properties, then how much equity do you have in these.

Corby Goade · Answer

Sounds like you need a partner- that can come is a couple different ways:

-You can partner with a PML and pay interest on the funds.

-You can work with an equity partner and pay returns based on the performance of the portfolio.

-A hybrid of the above.

If you can reproduce those numbers easily, it shouldn't be hard to find someone in your market who is willing to jump in. Go to some meetups and shake some hands.

Best of luck!

Mason Weiss · Answer

I would look to partner, you can find the deal and someone else can assist with the capital. You have the proof of work, now time to share that with others to create a win-win.

Bobby Paquette · Answer

What are you doing with the $5k cashflow you are making?

HELOC an option?

Andrew Jones · Answer

Amen, I would love to find some good partners!

Andrew Jones · Answer

I aquired all these properties within the last year and a half.  I tapped into the equity on one of them to purchase my 4th.  There is equity, but not enough for a 25% downpayment. Option 1 is to let that build over time, option 2 is what I am doing here; trying to get creative because I am eager.

Mason Weiss · Answer

I agree with the above statement, with such strong cash flow I assume you have some equity in those properties that you could tap into and scale.

John Morgan · Answer

@Andrew Jones

Are they paid off? If so, I’d do cash out refis to scale up. That’s how I bought 12-14 houses with no out of pocket expenses.

Eliott Elias · Answer

Partner with others.

How do I scale up my portfolio?

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