To buy more or Not to buy more that is the question

[JJ Cole]

OK, Here is here I stand:

I own 12 SFRs, have loans on 4, bought the other 8 cash. Captured anywhere from $25K - $45K in equity going in on 10 of them. Good areas and schools, no war zones; solid C and a few B neighborhoods. Typical rent to purchase price+rehab ratio is between 1.3-1.6%. Have a couple of lenders willing to give me 6 cash out refi loans. I was planning on taking those and then trying to buy 6-10 more houses to get to 20-22 houses. Then I read on the forum that many a investor has gotten over leveraged and gone bust.......and now I am wondering whether I should reconsider?

[Jeff S.]

Or you can consider the IRA, emergency (I am talking serious emergency) money and borrow an equivalent amt outside IRA for properties. If the prices are right they should be able to support the debt. This way you have tax deferred income from the IRA, you get your depreciation write-off and can write-off interest. Saving on taxes as opposed to paying penalties is best IMO.

When you retire you can cash in the IRA and pay stuff down if you choose.

It is a good feeling to have investments that equal your debt.