Strategy for buying 12 rental properties this year

[Kirsten Braddock]

Our goal for 2018 is to own 12 rental properties. We are newbie investors with 1 SFH under our belt. We have $27k in an IRA that we are using to help us kick off our purchases. The price range for the homes is around $50k each. So purchasing the first 2 is pretty straight forward (20% down /conventional loans). After that we plan on tapping into a HELOC to purchase 3 more in the 2nd quarter. After this, I'm a little unsure how to purchase the remaining 5 properties as we won't have anymore cash reserves for the 20% down needed for either conventional or hard money loans. We thought seller financing could be an option, but doubtful we can get all 5 this way and we would still need money to put down. We've also learned about a company named fund and grow that can access business funding via credit cards. The money is interest free for 6-18mos. Figured we could use this for the down, but then we would need money to pay the CC back after 6-18 mos. In addition, we are going to start the year wholesaling properties to raise capital. Does anyone have advice on how to move forward? Would love some guidance!!

[Ron Flatt]

Nice goal, but instead of putting out that number,  try analyzing at least 10 deals a week.  Put in an offer when you find ones that meet your criteria.  

I would much rather see you get 5-8 properties that have a great cashflow, than rush into 12 units where you may not have deal you should have.  

Work on the process of finding the deal, get it nailed down start looking for the next.  You may wind up with more than 12, but no matter how many you do find it will put you in a better position if you go for the analysis.