Pulling 500k off blanket loan

[Damel WIlson]

Hello, fellow bpers!

I will have 500k to invest in cpl weeks and wondering what you all would suggest in doing with this amount?

Currently, I own 9 properties. 8 sfh and 1 commercial property. I only owe 70k with around 900k in equity in all. I’ll be doing a blanket loan on 5 of the sfh and getting 500k at 5.8 on 30yr fixed. I was thinking buying another 20-25 sfh at purchase price of max 80k with dp of 20%. With mortgage,taxes and insurance, cap x, pm, prolly be around 700 a property. I live in Indiana and homes at that price will rent for 900-1300. I’ll be looking at 200- 400 cash flow off each property. I should cash flow 8-10k month off 20-25 properties. I already receive 8k cash flow off the properties that are currently have. Any opinions would be awesome. I would like to invest in some apts but I have no experience and it scares me.

[Nik S.]

@Damel WIlson

I second Cody L. Go multi-fam over the bulk house buying. Economy of scale is much stronger in multi investing. Plus you’ll save a lot of time and money by buying a larger asset than several smaller assets. I’d hate to look for 25 houses to buy....