Taking it to the next level-buying 3 properties within 3 months

Taking it to the next level-buying 3 properties within 3 months

Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes

I want to take it to the next level. I have seen several posts of folks buying several properties (sometimes 10 or more in a year). How is it done? I have acquired 3 properties over the past decade. Each of the properties cash flow very nicely..my monthly cash flow after mortgages and utilities is $3589. I've used some of the cash flow to pay down the mortgages even faster. But I still have over 30K set aside for a down pmt on the next property. I currently have about 190K in equity between all of the properties. I figure I can keep saving and buying a property about once a year, but I'm trying to learn a different way. 

In my mind I can use a portion of the 30K to house hack into the my 4th property, but then if I want to buy another one relatively quickly I will need 20% down for a non owner occupied property...Do I need to get a line of credit on the other properties and use that to buy the 5th and 6th properties? Is there another way to do it? What am I missing here? I feel like there is something I missing when I head of people buying their first property and then suddenly buying 6 or 7 the next year. It doesn't make sense in my mind how they can acquire the properties so fast. If you have acquired properties in fast succession, I would love to hear from you and how you did it. Thanks!

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  • Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes
    9y

    So, I'll try to answer my own question since no,one else chimed in. In addition to house hacking the next place w/ a 5% down OO loan....Do whatever it takes in your area to find properties the way wholesalers do....and then lock it up for around 70 cents on the dollar of ARV. Close quick using a hard money lender, have your contractors lined up and rehab it quick. Then Refi it w/ a conventional NOO loan at 80%...might be difficult in my area most will only go up to 70-75% LTV on NOO...although I know one place that will go higher. Once its refinanced into a conventional mortgage you've got your cash out of the deal and ready to deploy into the next while at the same time truly acquiring a place with some equity. My thoughts: This is a lot more leg work upfront, but can be very rewarding.

    This same strategy would work even better if you can get it owner financed....lots cheaper than hard $ and typically won't impact any limit on the # of mortgages you can have at once. 

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