$224k in equity, $800/mth cash flow - how do I grow?

[Nathan Shankles]

I’m 32 years old, and a full time teacher. My wife and I own two investment properties with $224k in equity that are currently cash flowing $800/mth after all expenses and after accounting for vacancy/maint/capex. Our goal is to be at $12k/month cash flow in 8 years. What would you do to grow if you were in my shoes?

[Glidden Rivera]

@Nathan Shankles

Easy: get an equity line of credit on the property.

Have it at the ready ( notice I didn’t say refinance and pull equity out)

With a line of credit you can be the bank, use it when you need it and repay it and use it again and agin and again.

Always be on the market, looking and ready for when the right deal comes along. You can find deals even in This market.

Here is what I know to be true out of experience: in the world of investing there are two tragedies. The first is: not knowing a good deal when you see one and the other not having the resource or understanding to gather the resource to buy when the good deal is in your face.

To overcome the first, you must stay active, know your numbers like the back of your hand. When you drive through a neighborhood, or someone calls you up and says “ I have a house I want to sell, you know it’s market value immediately and without hesitation. In fact, you know the market so well, you are not afraid to make your offer over the phone or on the spot.

You will beat 9 out of 10 investors every time.

This is called investor reflex ( just made that up, but I could preach about it) . Always be in the market, always be studying, no such thing as luck if you are always present. The good deal is going to find somebody you just need to be on the road.

The next obstacle you have overcome already (Pat your self on the back) you have resource to buy your next. I suggest you BRRRR. 12k/ month is easy. If you follow BRRRR, you will do it in 3 yrs conservatively.

Focus on understanding the market!

Last thing: you will lack in the areas where you lack focus, do not lack understanding or expertise. Build your acumen daily!