Looking to scale- Need advice!

[Lawrence Kutsovsky]

Hello BP Fam! Typically not active in the forums but wanted to take an opportunity to reach out for all of your fantastic advice you guys usually give.

My wife, brother and I are really looking to scale with our RE investing. We combined have a W2 income of around 385k annually and have around 1 million worth of equity in our various properties that we can leverage. We typically focus on STR's in FL and SFH's in Texas for LTR.

To all those looking to scale, where would you go from here? Refi properties to purchase more? Heloc on properties to have a line of credit to use for down payments and closing costs? We’re really looking for advice on how to move quicker and smarter.

Our main goal is having enough cash flow to cover our lifestyle.

Appreciate all your advice in advance! Looking forward to connecting with y’all.

Lawrence

[Jonathan Bombaci]

If you're looking to scale quickly and effectively then I recommend purchasing medium to large multi-family properties. If your goal is 50 units that could be 50 SFH, 25 duplex's, 10 5-unit buildings, 5 10-unit buildings, or 1 50 unit building. Which is the path of least resistance? I stared with small multi-family's (2-5 units) but we wanted to grow faster. We sold off most of our smaller units and now we're buying bigger properties. We just closed on our first syndication deal at 132 units and are not looking at any properties with less than 24 units going forward. If you stay small you'll need a ton of good SF deals to get where you want to be, if you aim LARGE you may only need a couple good deals to get to the same place. And it is far easier to raise funds and capital on the larger institutional assets than fighting through a barrage of refinances and HELOC loans on the smaller properties.

SF's and small multi-family deals are great ways to get started and build up equity. We help clients buy them all the time in MA and NH, but since your question is "how do we scale quickly" the answer is simple. Buy less, larger buildings.

Best of luck, 

Jon