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Updated about 8 years ago,
How to buy more properties
Hello everyone.
I just closed on my first 3unit house a month ago.
Put 25% down
My cash on cash return is
19% annually or 1.7% monthly.
I'll be honest here and say I was very eager to buy and bought at market value...lesson learned their.
My plan is to pay the house off in just under 5 years and to use the equity to buy another property free and clear of a mortgage.
But my goal is to acquire many properties.
My DTI is to high to finance another property the conventional way any time soon.
So my ideas are
1) Pay off the house, use equity to buy another
2) Utilize 3rd floor attic space (high ceilings, stair case) build a 3 bedroom apartment that will bring me in another $800 or so a month.
Probably require a 30k investment.
3) save money for a few years to use as down payment and hope my dti will be low enough by then to finance
Any other suggestions or comments on any of those possible options ?