I NEED MORE RENTALS!! but.......

[Christopher Vis]

Hi everyone, my first post!

My initial strategy was to buy a rental, rent out the rooms individually (separate lease per room), save as much as possible, buy another rental once I've saved enough, then continue the cycle until I've replaced my salary with cash-flow to quit my 9-5 and raise my kids.

The problem is, my debt-to-income ratio is now about 40% and can only qualify for about $400/month more in additional loan/debt payments. I save about $1000 per month and would take me about 20 years to be able to pay cash for a house. Too long! I'm in need of ideas for a better strategy for funding my rental addiction.

I now have 2 single family homes (11 rooms total, 7 are rented, which is enough to cover all expenses for both homes) and used conventional 30 yr mortgages.

My initial idea was to market to individuals looking to invest, raise enough to pay cash, then pay each investor a fixed amount each month until they have been repaid their initial investment plus 12% to 18% interest (as a return on their investment). I would definitely need to consult an attorney and likely need to form some sort of corporation to do this kind of business, but just wanted to hear other ideas.