Overextending? Need advice from the old timers

[Hannah Joy]

I have managed to obtain 3 buy/hold properties in 3 years and am in the middle of converting the garage on the 3rd. A property just came on the market that seems like a very good deal, and exactly what I look for. I feel like I have to try for it! Theoretically I could obtain a HELOC on my first property for the down payment on this one and sit on it until I have time for reno. I feel pulled in both directions - go all in on a good deal or be smart and wait for the next one because I am pretty leveraged (and tired) as it is? It seems like such a good one. Advice from those that know better?

Property 1: 276k balance, 450k BPO, monthly cash flow average $500 

Property 2: 376k balance, 700k BPO, monthly cash flow average $450

Property 3: 420k balance, 650 BPO pre garage, monthly cash flow $550 once garage is done 

Potential purchase: 375k purchase, 75 down payment, 3 units, currently rented. Development potential to add more units. Not in the worst shape, could wait a year or two to fix up. Great location. Would need at least 100k to update. 

Thanks!

[Bjorn Ahlblad]

California is a special case where tenants are protected much more than LL's. You could need serious reserves and access to cash. If property values fall and you are forced to sell you would be wiped out. Other than that you can make a serious return with relatively few properties held over time. 

I invested in the Bay Area -buy and hold- for 30 years and did well. Just don't get over extended, always have money!

Hannah you were great in Black Sails?