What’s your maximum number for single family homes?

[Aaron Arnold]

I realize this is a totally subjective question but I’m going to ask it anyways. What’s the magic number for single family homes? How many is too many? How many for maximum efficiency? What’s the most you could self manage?

[Account Closed]

Originally posted by @Aaron Arnold:

I realize this is a totally subjective question but I’m going to ask it anyways. What’s the magic number for single family homes? How many is too many? How many for maximum efficiency? What’s the most you could self manage?

 Nah, you don't want to self-manage. Do it the way I do. 

I find and buy a property "off market" using Subject To then I sell to a Tenant Buyer.

When I sell to a Tenant Buyer, since I am offering Terms that they otherwise can't get, I sell the property "As Is" for a "built in equity" of an additional $10,000 to $25,000 depending on the house. (I bump up the sales price what the value WILL be) then I get that (it is called "the back end" when they refinance or sell. The buyers are usually successful businessmen that can't get bank financing because they aren't W2. They have good income, money in the bank and want to buy a home.

I get a "down payment" up front of $20,000 to usually $25,000 then I get the monthly cash flow and then I get a "back end" equity payoff.

When I "Buy & Hold" and only rent it out, I have to take care of a tenant, fix the roof, replace the AC etc. Worry about them trashing the house, worry about vacancies. When I eventually have to replace the roof or AC it wipes out the profit from that house. The most I get up front is one month's rent. I continually have to find new sources of money for the next one, usually a bank. Bank's Stop Lending at 10 properties.

However, when I sell it to a tenant buyer, there are no real estate agent fees, I get $25,000 immediate cash, I don't have to worry about roofs, ACs, and tenants and I get the same cash flow. When the roof or AC goes, the Tenant Buyer owns the house, so he takes care of those. If the market tanks, my built in equity still exists. Each time I get a Tenant Buyer's down payment, that gives me Money to Buy the Next one and the Next one and the Next.

Pretty cool, eh?