Cash flow isn't as good as I thought it would be - How do I scale?

[Philip L.]

I've currently got 7 single family rental properties in Michigan (C/B Class areas)
Bought most of them needing updating/rehab - followed the BRRRR method
Estimated cash flow for each property is $400 to $600 a month 
I've tracked the expenses for each property very accuratly over the past two years and overall each property cashflows around $200
It's dissapointing but I would like to know how do people with 100+ houses scale this business model or do I need to pivit into multifamily? 

[Travis Biziorek]

Hey Philip, couple thoughts here... I have 12-doors in Detroit in C Class areas so I've got some similar experience it sounds.

First thing... why was your estimated cash flow off so much? Was there something you weren't accounting for? $400-$600/door doesn't sound realistic today so I'm curious what that math looked like.

How are your BRRRR's working out? I buy cash and do cosmetic updates, then refi out. I don't always expect to get all of my money out but I do expect to do better than throwing 25% down on something. Over time the BRRRR method will scale faster.

Lastly, patience and time will help a lot. How long have you been at this? When I started my cash flow numbers were similar to yours (~$200/door) but as rents have gone up my numbers are far better. I'm netting more than $650/door now.

Scaling happens slow and then all at once if you keep at it.