Scaling up from 3 portfolios to 10 or more.

[Elijah ROberts]

I looking at scaling up my portfolio holdings and wondering if anyone knows of a better strategy is this high interest environment. I have 3 rental units so far with tenants in them; I've looked at getting another condominium to make 4 units, but the bank would literally need me to put down about 40% as down payment to ensure its cashflow positive.  Any thoughts?

[Elijah ROberts]

Quote from @Stevo Sun:

Quote from @Elijah ROberts:

Quote from @Stevo Sun:

I think it depends on your goals as well. At least in my experience, cash-flowing properties are typically in less desirable neighborhoods. If you are buying in an excellent neighborhood, you might struggle to find a cash-flowing property. It might just be you are trading some cash flow for better appreciation in the long run. 

 That's Exactly my Problem. I haven't looked outside BC or other provinces simply due to my schedule. I might have to look at other less desirables. Only concern is that even after getting 2 more, I'm afraid I might still have trouble getting the big banks do it for me.

I mean it's not necessarily 'wrong' to look for appreciation instead of cash flow. Just depends on what you are looking for. I'm trying to look for more appreciation now, knowing I will be sacrificing cash flow some what. But I wouldn't say no to a good cash flowing property. I just won't force myself to go to less desirable areas just to chase that cash flow. I find those areas tenant management is more challenging and time consuming at times. Which may or may not be worth it to you. 

 So far its easier to manage my tenants as they are close and are all in growing areas of  Vancouver Island. Remote areas may require me to subcontract a management company to do the work for me at a fee. Key is to keep it cashflow positive with the extra management fees.