How do I buy 10 rental properties in 1 year?

[Joseph Fenner]

My goal is to acquire 167 rental properties in 5 years generating $500/month on average. 

Im starting my first year and am planning to buy 10 properties in 1 year. I’ll have $50K saved and $8,000 in credit lines. 

My question is how do I get the money for 10 down payments? I’ll have enough capital to cover 2 down payments 1: first property Under 5% because I’m house hacking. 2: And 20% for the remaining 8 properties. Let’s assume 40K down payment * 8 properties = $320,000. Is it smart to finance the down payment on top of the property? How do I get the financing? Is there another way I could accomplish this? 

[Kevin Sobilo]

@Joseph Fenner, where did you get these goals? They don't seem realistic on their face and here are a few thoughts as to why.

1. You don't mention the market, but even in a good cash-flowing market $500/unit not not easy to find especially when fully leveraged at today's rates and also trying to borrow down payments. It's hard to find ANY cash-flow doing that.

2. It sounds like you believe that you can borrow, buy, and make money. If it was that easy everyone would be wealthy. It takes more effort than that to find, make, and execute on good deals.

3. You seem to believe cash and financing are your limiting factors and if you were only going to buy 1 property that might be the focus, but to buy many deals you need processes in place to find opportunities. You need the ability to do something with those opportunities doing rehab work and you need to be able to execute with professional quality property management.

4. If you have the skills and get the experience, you can get the funding. Lending to a novice who wants to borrow 100% of the equity of a rent ready property is riskier than lending to someone experienced who wants to buy, rehab, rent, & refinance a severely distressed property even though in the later case you would be initially lending MORE than the value of the property, but knowing the ARV will well exceed the loan in the end when executed well.

5. I would throw away the goals and start by assessing YOURSELF and determine what skills and effort you will bring to real estate investing and THEN decide on an investment strategy that suits you. After that then and only then make some goals based upon that because then you will have goals that make sense in light of what you are actually able and willing to do.