My goal - to be netting $30,000 a year from rental properties (probably single-family homes). I'd like to hit this goal in 2-3 years.
My situation
- I own 1 rental property outside ATL. It's paid for 100%. It nets about $8k a year. The house is worth around $140k.
- I have a job making a little over $100k a year. Steady job - been there for 10 years. Could set aside $2k a month for further investing. Tired of job - want to get out eventually.
- I currently rent as we just moved and didn't want to buy yet.
- Credit score is 800+
My question - what is the best way to go about financing further deals? I financed my rental with a conventional loan through SunTrust. Put 20% down, if I recall. Is that the best use of my money? It'll take me a long time to be able to net $30k a year this way because I just don't have enough money. I'm aiming to net $200 a month from each property, so I need 15 properties, so I can see myself running out of money pretty quickly.
I've thought about looking at multi-family homes, but I have some experience with single-family homes, and hate to start a brand new learning curve. I'm bad about learning and not doing.
I've also seen strategies where people buy downtrodden homes, fix them up, refinance, and then take out a loan on the appreciation, and buy another home. Is that another option?
Thanks for any feedback you all can give.
