5 single family in 18 months

[Account Closed]

Hi Everyone,

I am a single mom who decided to just GO FOR IT. It was either now or never and I chose NOW. In less then 2 years, my rental profolio consist of 5 rental properties, all with positive cash flow.

I bought a house 10 years ago at a higher interest rate. I was approve for a streamline refinance that allowed me to lower my rate without checking my credit score. My mortgage payment was cut in half and I am presently bringing in 500.00 passive income. 

Since my credit score wasn't the greatest, I bought my 2nd and 3rd property with my life's saving. Each property cost less then 30k, and rent for 1k each. Those two properties were just appraised for 90k each.  

For my fourth property, I found a small bank that approved me for a 30 year mortgage on a 27k house( yes, I know...why get a mortgage for such a small amount??... Lol)

Well, I exhausted my saving and only had enough money for a down payment. Plus I learned a new term called LEVERAGE. My mortgage is 350.00 but the property rents for 1,100 per month. There's no equity but I am fine with that:-).

I just closed on my fifth property. It's a 5 BR, 3 bath located near public transportation with easy access to center city Philadelphia, it's also within walking distance to a college and medical school. Since I worked at a hospital full time, I have access to medical students and residents. My goal is to rent it out to students or medical residents. Mortgage payment is 1,100 per month but it has the potential to be rented at 2,500 per month. I already have tenants waiting to move it. 

With that being said, I am new to students' housing and do not know the pro and cons.... I am open to any suggestions. Thank you for all the motivation that have gotten me this far.

[Michael Lee]

Hello and welcome to BP!  It sounds like you are doing great.  Yes, leverage is the way to go and house value does not mean much as long as it looks good on paper.  Do not cut any corners to make a property investment look better.  The time it took to buy 5 houses was a decent pace.  Do not try to do everything yourself.

Have good and experienced Team members are professionals that can help you meet your goals.  Just do what is average in that neighberhood.  Build a relationship with your sellers.  Take your time with your poperty and make sure you do not miss anything.  I am 60 years old now and I found BP about a year ago and I have not decided what to do but I have learned a bunch of things.

I have been in the construction business since I was 17.  Do not make any emotional decisions.  Make sure you are safe with your insurance coverage.  I also held an active real estate broker license for about 30 years before I had a stroke about 5 years ago.  If you think I can help you please contact me through BP at any time.  Best wishes!