Maxing out at 10 loans, what to do next

[Joe Kim]

It looks like I will hit my 10 loan limit in the next few months with 3 new deals I just started.

My initial plan was to pay off my smallest mortgage 70K by doing some equity stripping/refinance of 2 other investment properties in Houston and Indy that have appreciated.  However, my lender tells me I cannot do that once I'm beyond 4 loans.

I just maxed out on my HELOC which was my favorite way to borrow.

I'm wondering what the best next steps are to buying more properties?

#1 Pay down HELOC quickly and re-use

#2 Pay down my smallest mortgage at 70K and free up 1 loan

#3 Start accumulating cash to buy properties with ALL Cash (that would restrict me to cheaper properties in rougher neighborhoods that I personally do not like)

#4 Portfolio lending with a smaller bank

#5 Private money (not right for me since I do only buy/hold with turnkey providers). I wish I could do BRRR method but too time consuming to do it out of state/longdistance.

#6  take money from 401K (borrow up to 50K).   I cannot convert into self-directed at this point.

#7  Chill out for a few years and see what the market does.  Another recession in 2016, 2017?   Pay down mortgage debt, free up another loan, optimize my portfolio/cut expenses, accumulate cash.

[Michael Swan]

When you transitioned to multi (greater than 4 units per property), out of state, did you find a partner in Ohio?

Unless you have boots on the ground, I find it to be much more difficult to do multiunit apartments effectively or needing to spend inordinate amount of time flying out to the site and being more involved hands on.

If I had a partner who could do more of the hands on work, I do financing that could work.

Hi Joe,

I am a teacher.  I teach at the daytime and at night time at the local community college.  I have made connections and have acquired the 8 single family in Ohio and the 3 soon to be 4 apartment complexes in the last 14 months.  Napolean Hill once said, whatever the mind can conceive and believe, it can achieve.  I work about 60 hours a week during the school year at my 2 teaching jobs.  I believe that if I live like no one else now, in a few short years I will be able to live like know one else.  

We are only limited by the limitations we put on ourselves.  I have 45 front doors right now and one vacancy.  Soon to be zero vacancies and 57 front doors with our new acquisition in February.  When anyone tells me they find it difficult to do something, I tell them to do it anyway.  Get er done!! That's what I tell my property manager when he told me it would be difficult to rent out our 10 vacancies during the dead of winter and we are down to one vacancy now!  I click on new Craigslist ad every three hours on my phone to flood it with rental ads.  If someone tells me something is virtually impossible, I tell them there just has not been found a solution yet.  

Would Henry ford have been as great as he is if he would have listened when his people told him it was impossible to build an 8 cylinder engine?  How about Steve Jobs?  Did someone tell him that this iPhone thing would not be the new wave and nobody would pay these data fees for their little phone?

If you reach for th stars, you may grab a handful of clouds, but you most certainly won't grab a handful of mud.

Swanny