Seeking Advice on next steps in building Real Estate Portfolio

[Jeremy L.]

I'm a young real estate investor seeking the advice of experienced real estate investors to determine my next steps in building my real estate portfolio.  I've outlined my situation below. Any advice, comments, etc. are much appreciated.

I currently own 3 single family residences, two of which are rentals.  I move frequently, so I buy a home every time I move and rent it when I leave.  My goal is to build up a cash flowing real estate portfolio in the next 8-10 years, so I can leave my current profession and transition to investing full time.  When I hit the 8-10 year point, I would like to be generating at least $10K per month in real estate income.  I'm open to different real estate strategies whether it be flipping, buy/hold/rent, expanding into multifamily, venturing into buying/selling notes, or other strategies. Thus far, the rentals are not cash flowing, however they are accumulating equity with minimal overhead expenses.  I have capital available to invest in another home, but I'm trying to determine if I should pay down my current mortgages, buy another home, expand into multi-family, or consider other options I'm not familiar with.  I'm also getting close to 4 mortgages and open to other financing strategies that will help me move forward.  Ultimately, I'm trying to lay a smart foundation that will allow me to reach my 10 year goal.  All options are on the table.      

Home 1 is 3 bed/2 bath split level home.  It has been rented for 8 years at $1250 per month and was appraised in January for $155K as an existing rental.  I still owe about $100K.

Home 2 is 3 bed/2 bath single story home. I bought it brand new in 2010 for $174K and current market estimates indicate it may be worth $190K.  Just refinanced it and owe 160K.  It's been steadily rented for the last 2 years at $1450 per month.   

Home 3 is a 3 bed/2 bath single story home.  I bought it for $220K and owe $213K.  Current market estimates place it at $230K-$250K.  It's currently my primary residence, but I plan on renting it summer 2016.  Comparable rentals in my area indicate I should be able to get $1600-$1700 a month.  Demand for homes in the area is increasing and the supply is limited, so I suspect this home will be a great rental in the future.

If you were in my situation, what would your next steps be in building your real estate portfolio?  Do I pay down the existing mortgages (all in the 3% range)?  Expand the portfolio with other homes?  Buy a multi-family unit? Do something else?  

Jeremy

[John Cohen]

@Jeremy L. I love the ambition and the clarity you have. If I were you I would think about a multifamily, I currently own 92 units and have accepted offers on 217 units. I started in the single family world but realized with economies of scale multifamily was a better option, for me.

The time spent on the single family homes, with the same time spent to find the right multifamily you can probably get a larger multi to produce the same amount of cash with less downside if a tenant moves out. I would love to chat and maybe I can explain or show you some ways to go about finding the right deal.