Financing ideas

[Maria Vogel]

I currently own 3 rentals. One is supposed to close this week it is in a nearby town and I want to re-invest in my town. (Better rental market) I will end up with about $40k cash when this closes. I have access to about $50k more from HELOC's and personal loans but not a great long-term solution.

I have been looking at my options and would really like to get into multi-family. I need advice! 

Here is my situation: 

Rental A) newer home purchased new. 4 bedroom 2100 sq foot rents for $1500/mo high demand for this area and this type of rental. Owe $183k worth about $220k. Monthly profit about $500/mo. 

Rental B) Older home just purchased July 2015. 3 bedroom (4th bedroom in the basement without egress-can increase the value by making this egress) Rents for $1150/mo could increase rent but I have good renters in there. Owe $105K worth about $160k. I put $35k down for the downpayment and reno so there's a lot of equity tied up in this house. Monthly profit about $400/mo. 

The rental market is hopping here. I would like to build a few townhouse-they do very well both as rentals and for resale. I know an investor here who made a lot of money building/renting and selling townhouses and have spoken to another one who also says multi-family is the way to go. I just need to figure out how to get into them! 

 Older small townhouses with low rent are selling for a lot of money-must more than they are worth and the profit would not be there. Newer townhouses are renting and selling for even more. I just found a great deal on lots where I could build 12 units. For 2 townhouse lots (4 units) for $115k-there are 6 lots available. This is an unbelievable deal. Utilities are already there and its in a great location-I can't believe they haven't been purchased yet! I just don't have the cash to pull this off-I could possibly pull off one townhouse lot with the cash I have. I have resources for building supplies cheap-we can contract ourselves or there's a few great contractors-I don't have the numbers yet on how much it will cost to build them.

I need to figure out how to find investors or more cash. 

Does anyone have ideas or advice for me or is this a pipe dream?

Thank you, 

Maria