Taking Rental Properties to the Next Level

[James Carr]

Hi!

My wife and I got into buying our first rental properties in 2021 and currently run seven properties we either bought or financed taking advantage of those low interest rates that we had last year.

So far these have been doing well, located in college towns, east to rent out and generating revenue. My question is how do we move to the next level? While my wife is talking about getting to ten units, I want to think bigger as in 600 units, 1200 units, etc.

Is there a good guide on doing this realistically? I’d imagine it involves establishing and raising a fund with various investors?

[Andrew Garcia]

Hi @James Carr, it sounds like you want to get into syndication. There are so many good resources out there that can teach you about syndication.

It is typically done for multi-family. If you are looking to scale with SFHs, you might need to change the structure.

In terms of scaling to ten units, it is pretty straightforward. You can get up to ten financed properties with conventional financing.

With 7 properties, you might be running into DTI issues. There are still options.

You can get DSCR loans where the lender qualifies you based on the income generated by the property rather than your personal income.

Hope this helps! Let me know if I can be of any assistance.