Scaling My Small Rental Property Business in Madison, WI

[Lance Jenks]

Hello all. First time poster here, although I have been a lurker for a few months now. I need some advice on scaling my business.

Aside from my primary residence, I currently own two single-family houses which are both rented out. One of the properties is completely paid off, is valued at approximately $375,000, and rents for $1,950 per month (tenant pays all utilities). The property is older and needs some upkeep, but is located in a desirable neighborhood (very walk-able and in close proximity to the downtown). The property is likely to continue steadily appreciating in value. The second rental property (which I recently acquired and have been fixing up) is valued at approximately $580,000. It is currently vacant as I finish fixing it up. This property is located on a nearby lake, approximately 15 miles south of Madison. I have approximately $200,000 of equity in the property. I am not sure yet as to whether I will simply rent it out to someone wanting to sign a long-term lease, or perhaps Airbnb it (the former is probably the better option for now because of COVID).

I have 20% equity in my primary residence, have a good W2 job as an engineer making a bit over six figures, and the two mortgages that I do have are 30 year fixed at 3.25%. I also keep plenty of cash reserves for unanticipated repairs, etcetera.

Is there anything that I am doing wrong here? If you were in my shoes, what would you do to grow the business?