What would you do in my position?

[Tim Houzenga]

What would you do in my position to acquire another income producing property of any type. Land? SFR? Commercial? Long Distance? ( I know what I want to do, but would like to see how other people would approach this situation):

I’m in a linear market where appreciation is around 1.5% a year. We do not bake appreciation into our numbers when analyzing deals.

I have one rental fully paid off worth $95K. Cash on cash return is 7%. $95K equity.

Second rental i bought for $70K. Traditional 30 year fixed rate at 5%. I have $17K of my own cash in the deal. Cash on cash return is 8% and 11% if you include principal paydown. House is worth $80K (sweat equity and added a bedroom). 25K in equity.

My primary residence is a zero down 30-yr fixed rate VA loan at 3.875 APR. worth $130K. Only $8K in equity.

I have the ability to save $20k a year from W2 income and rental income. $20K is more than enough to buy one property a year in my area with 15/20/30 yr fixed loan with 20% down and cosmetic rehab prior to renting.

I’m going to assume answers will vary depending on personal investment philosophies and where people conduct real estate activities globally. I’m in Northwest Illinois or as Brandon Turner would say..... ruuuurrwwaaallll United States.

Penny for your thoughts! Best Regards!