All Forum Posts by: John Morgan

@Brian Chadwick

Yes, do it. Or do a cash out refi to scale up. I've done both to grow from 2 paid off STR and now have 29 SFR by using equity that was sitting there doing absolutely nothing for me to buy more and more with 20% down. My net cash flow went from only $1600/month to 19k/month over the next 6 years. I'm a fan of harvesting the equity to buy more and more cash flowing properties with zero out of pocket cash for down payments. But some (Dave Ramsey) people would rather have just a few paid off properties making just a little cash flow. I'd rather double, triple or quadruple my cash flow by putting that equity to use and leveraging my way to wealth. That's how the wealthy do it with real estate or businesses. Leverage is key and will create generational wealth in less than 10 years.

@Daniel Hartz

Find 23k somehow and hang onto this one.

@Pranav Patel

Yes, 50k is plenty. I'd put 20% down on a SFR that will rent for around $1800-$2000/month.

I've got 18 SFR in Grand Prairie, Arlington and Fort Worth. Great appreciation and rental demand. I buy in the 220-260k range.

Dallas

Quote from @Dwayne Rowe:

Quote from @John Morgan:

I’d do individual cash out refis on them to scale up.

Interesting approach, how would multiple refi affect my credit score?

I’ve done 5 cash out refis to buy 12 houses with the cash and my credit score is 790. I currently have 20 mortgages right now.  If your credit score is 740 or higher, you’ll get the best terms and rates. 

@John McKee

Successes: Bought 5 cheap SFR out of state in Arkansas that cash flow decent.

Failures: Had a house that burned down this month that wasn’t insured as high as I should have. I’ll lose $ when it’s all said and done. Luckily everyone got out alive.

Aha moment: That owning 29 buy n hold SFR is enough. I've hit my financial goal and can quit buying houses.

2025 goal: pay off my last two 401k loans I used to buy a couple houses and enjoy a second home we just bought for ourselves in November. Time to ride off into the sunset and spend all this mailbox money on ourselves vs buying more and more rentals! It’s been a fun 9 year journey investing in RE with no regrets!

@Mike Figueroa

I'm 54 and have scaled up by pulling equity out of what I've got (with cash out refis) so the new properties didn't cost me anything out of pocket. I've also taken out short term loans (1-5 years) to use as my 25% down payments. Then I pay those loans off asap and repeat. This is how I've quickly scaled to 29 SFR that cash flow around 19k/month net. I'm a fan of leverage to scale up and ramp up my passive income. And I like to harvest equity to buy more cash flowing properties.

I’d do individual cash out refis on them to scale up.

Can you at least break even if you go sec 8? I’d do that or keep lowering the price. I have one near a homeless shelter and a liquor store. It’s like a scene out of a zombie movie as these people stagger down the middle of the street to the liquor store on the corner past my house. Nobody wants to be around people like this, so I’ve had to lower my rent drastically and have a high turnover rate here. I should have driven this hood at multiple hours of the day before I bought. My mistake.