Suggestion for next move

[William Dorough]

Hi all,

I have invested in few SFRs at this point with loan.

I understand that is not best method as investor, and could be considered as mistake. Yet, beyond that I am wondering what I should do next considering own money will run out as I use it to invest and increase in the property prices.

Is it good idea to keep increasing the properties with loan? Should I research and learn to try on auction? (or any methods other than MLS) Rehab and flip to generate short term cash flow? Use OPM like hard money lender to broaden the options?

Any suggestions will be appreciated.

Thank you,

William Dorough

[Brent Coombs]

@William Dorough When you say "I understand that (buying SFRs) is not best method as investor, and could be considered as mistake", do you actually agree, or is it just what you have read?

My take on it:- it's only a mistake if you paid TOO MUCH for them in the first place! That is to say, all is well if you bought wisely, below market value, giving you instant equity, and/or the net cash flow easily exceeds the outgoing expenses. In which case, you should quickly be eligible for more borrowings so long you can show that the numbers stack up for the next purchases also. Lenders like to back proven winners!

If you CAN'T show Lenders a history of GREAT investments, maybe it's time to divest yourself of those "mistakes", first? All the best...