Going to see some growth in 2014!

[Bryan H.]

In 2012 I bought a property for $20k cash, put $10k into rehab and it's renting for $925. I also bought a $21k property to flip, put $50k into rehab and sold for $90k.

In 2013, I was able to rent out my old primary residence. It isn't making any money, but it isn't losing either. I was also able to purchase a 3rd rental for $77k and it rents for $1200.

Now, I'm pretty much out of cash to purchase anything else, unless I get creative. Just got word today, I've been approved on a cash out refi of my 1st rental. It appraised for $60k and they will let me pull 75% out, at 5.5% for 30 years. They will also allow up to 10 loans and make loans as small as $25k with 20% down.

So now, I'm looking at some solid homes in B/C neighborhoods around $40k that will rent for around $900. My goal is to put the refi cash down on a couple properties in early 2014 and get them stabilized with renters. Then see what else is available after that.

I love that my initial $30k cash investment can be used to purchase 2 more properties, my ROI will go through the roof.

• $30k cash
• $900 x 3 = $2700/mo rents
• 50% expenses = $1350/mo rents
• PI @ 5.5% = $550
• Cash flow = $800/mo x 12 = $9600 / $30k = 32% CoC

So, I'm looking at going from 3 to 6 rentals next year with no out of pocket cash. I'm super excited about the potential for next year. Which is funny, because I think the lender was more excited than I am. They were happy to see an investor with a good job, good 401k, good credit, looking at good cash flowing properties.

Now, its time to execute!