SPhilly - Scaling on up!

[Joseph Micheal]

Hi All!

Looking for some thoughts or resources on how to move forward. I am in the process of acquiring my 4th duplex in South Philly (1 Point Breeze, 2 Newbold, and 1 East Passyunk) - 8 total doors. I would like to understand how to scale up my operation. I currently have a full time job which pays well so each current property was purchased somewhat turnkey (no time / opportunity for value add) although each property cash flows nicely each month (especially when interest rates were good)! Also I hold about 15-25% equity in each property so no opportunity for a HELOC.

Is there a credit union who may be able to use the properties as collateral to purchase something larger?  I welcome all ideas and creative thoughts. 

Cheers!  Thank you!

[Chris McTyre]

I would be really careful to not overleverage at this stage of the economic cycle. Having low, fixed-rate long-term debt and positive cash flow heading into a potential market downturn is a decent position to be in. I've shifted to a more defensive position and am building up cash to be ready when there is blood in the water over the next 24 months. If you are looking to scale you are going to want to look at shifting to commercial real estate. Start networking and building relationships to build out a team to work on larger deals.