New to BP, would like advice on my strategy

[Bryan Germann]

Hello All!

My name is Bryan and I am into rentals.  I would love any feedback on my current approach and some ideas on how I can step up my game without dramatically disrupting my current lifestyle.  

I am 30 and currently own 3 homes, the one I live in and 2 rentals which I also lived in.  My first rental was when I was in college and I rehabbed the entire property, I got it for a great price and a low mortgage payment.  So with the improvements I was making roughly $350/month on a 2br/1ba house.  Its also very close to a university and rents in hours...literally.  

My second home is about 1.5 hours away from the first and is also a smaller 3br/2ba house which I got for a steal of a deal, its in a "transitioning" neighborhood though which is close to a growing and gentrifying city center with close proximity to parks and a very large trail system.  I had high hopes for this property when I moved in 3.5 years ago but not a lot has happened other than the market being very high right now.  I got a new job and decided to keep it.  I am currenty renting this property for $1350 with only a $867 mortgage payment...thats a $483 profit monthly and the best part is the house was redone before I moved in so it needs basically nothing.  

My latest home is the most expensive I have bought at $265k but is also the largest home at 4br/2ba but its in Minneapolis, MN in a great neighborhood and its undervalued by about $25k according to my appraisal with no improvements.  My exit strategy for this one is a live in for 2-3 year and sell but to rehab it on my own while living there and hopefully make a bit of money on the exit.  Figure I need to live here for my job and I enjoy doing the work on the house so no harm done.

So that is my current status, its a bit hap hazard and just a more go with the flow of life mentality for obtaining and managing my properties but 3 at 30 is not bad in my opinion and most importantly I am making money.  I just buy a property I like and then rent it which may be a folly way to go but its what I have done so far.  I want to buy more property in my primary market of upstate SC, because I plan to return there in 3-4 years and I perfer the taxes/market there to the mid west. 

What are your thoughts on how I am going about this, is it a smart way to go?  Do you see any strategies I can add to this that would increase my # of rentals while I am remote in MN?  Is there anything I should stop doing or be worried about?

[Tim Swierczek]

@Bryan Germann it is best when buying rentals to analyze them for that purpose even when you live in them.  It sounds like you have done well but it's by accident as it appears.   It sounds like you should look at which market is best for making money.  MN or SC and then focus on getting good cash flow properties in that area.  It sounds like you have equity in your current homes so you could use those to springboard you to more properties.  You may do well-selling #2 and use the cash to buy a property that is meant to rent.   Good luck and PM me if you would like to meet for coffee & talk strategy.