Three Rentals - Now What?

[Brandon Malone]

Afternoon Biggerpockets community.

Let me start off by saying, I have big dreams and passion to reach financial freedom- a place where the 8-5 is by choice, not by necessity. However, I also have a very cautious and diligent type of personality. With that said, after purchasing three rentals in the DC suburbs I have expended most of my cash. I currently have three rentals, with the following equity positions. These are conservative estimates.

Property 1 = $82k

Property 2 = $80k

Property 3 = $91k

I also have the property I reside in, which has $70k equity. I have a unused $42k line of credit on this one, since getting line of credits on the rentals could be quite difficult.

I feel stuck today, and not sure which direction to take. I am interested in continuing to add to my rentals, however, my cash-on-hand is very low on the personal side, and the cash for the rentals is intended to handle any risk/turnovers.

If any of you, have hit the position I'm in and was able to find a way to continue their expansion, I'm looking for feedback and ideas. Especially in today's market. 

[Russell Brazil]

Ive been there.  It's a matter of saving up your cash flow, and money from your income to build the down payment for the next purchase. Also at some point your risk of turnover and vacancy becomes muted because the cash flow from your other properties should make you able to absorb the vacancy without coming out of your own pocket.

How much free cash flow are you generating each month on the 3 properties, and how much are the payments?  If there isnt a substantial difference between your payment on one of them, and the cash flow generated from 2 of them, you might be overplaying your vacancy risk.