All Forum Posts by: Elliott Kleiman

@Taylor Dasch

Thanks Taylor! What debt structure do you use / how long is your amortization?

Hey everyone,

I'm curious on your thoughts. I have an existing healthily cash-flowing rental portfolio but my current strategy is to buy SFRs in solid "B" areas in a steadily growing region. Once I rent them and refinance (5 year terms, 20 year amortization) they cash flow but just barely. In 5 years when the new loan term begins, interest rates will likely be lower and rents will likely be higher, resulting in an increase in cash flow. This future cash flow (along with equity growth) is my interest in this plan. Assuming there won't be any banking issues in getting new loans, what are the potential risks with this plan? Cash flow is hard to come by these days so hopefully some of you have been thinking about similar questions! 

@Rob Bianco thanks for your response!

If I understand you correctly, you are advising a sort of modified brrrr strategy - modified since these houses are owned already but strategically pulling out a conservative amount of debt.

The houses are mostly C class but some border on B-.

The investor’s portfolio I am advising currently looks like this:

25 SFRs

Value: approximately 1 million

All properties owned, no debt

Monthly cash flow: approximately 10k

What are the best options for this particular investor to continue growing this portfolio?