Need advice for 5 year plan

[Mark P.]

If you have read my introduction, I explained my situation. I got started with my first property with an owner financed deal. It was already rented with long term renters that write me 6 months of post dated checks at a time. He gave me 2.9% for 5 years, with a balloon payment due at the end. After PITI it cash flows about $160 a month.

I consult part time and had built up some cash for my balloon payment faster than I thought I would, so I bought my second property a year later. A $65K house for $45K. I rented it the first day I put the sign out to a great young couple getting married this month. It also cash flows about $160 a month.

Funny enough, I was renting my house. I am divorced and was just staying in my youngest child's school district. When he graduates in two years, I was going to move but I just bought a Home Steps home that was too good to pass up. I close next week. It is a $72K house on a double lot right on main street. Everything has been remodeled except the kitchen. I plan on living in it for a year according to the rules, then renting it. It will cashflow after PITI probably over $200 a month.

I live in a small sleeper town outside a city, so don't laugh at my numbers. My $65K house is an all brick, three bedroom on a double lot right off main street. The $72K house is a four bedroom.

Here is my question. All my loans through a small town bank that keeps their loans in house. I appreciate that, because big banks are so difficult to deal with. However, because their loans are kept in house their interest rates are a little higher and the terms are 20 year variable, readjusted every 5 years. I got a 4.75% and a 5% respectively. I think, for rental property, that's pretty good.

What is a good long term plan? I have the balloon payment coming in in 3.5 years. Should I try and consolidate all the loans into one large loan? Should I find a bank that will give me a fixed interest rate since rates are rising? I would like to keep buying SFH rentals and maybe accumulate a portfolio of 10 or so, or get to a point where I could hire a PM.

Thanks everyone in advance. I appreciate any advice.

MP