For some context Joe, your first sentence there about what you want to accomplish reads like an elementary student wishing to be the NBA MVP one day.
167 doors in 5 years, starting with 50k?
So you have not been in the trenches yet, and all I can tell you is that is not doable at all. You need 500k and networks set up in 5 - 8 diff markets that work like an assembly line of options to be analyzed.
If you get into 30 year products from jump street your 50 will be gone in one deal. If you try and BRRRR and keep pulling out whatever you could upon refi, do you understand how long it would take to get to 167 doors? There's investors on these boards who been doing it for 20 years and they don't have 167 doors.
Look, I've seen a lot of the behind the scenes of brokering, originating, and coordinating of loans and projects.
If you want a cash flow heavy portfolio this is your strategy:
As far as SFH - the only holds are the higher value houses in desirable STR areas. Like you have a 700k house on a lake in a well to do town in Michigan let's say. STR is the way to go these days, no longer LTR. I price out so many DSCR loans. A Normal 250k - 300k house will never, ever get close to the 1% rule for rent. I mean a 300k house may have a 1.8k - 2k monthly rent. That number caps your tap potential into the equity as they'll never let you have a loan payment too close to actual rent. However, I just closed three refinances for an investor in the Pocono Mountains of PA. It has skiing in winter, hiking in spring, there's a few resorts up there as well. I have a client who has like 5 STR assets up there. Each one makes anywhere from 15k - 30k per month on STR. He has like a 7x DSCR on most. Holding these SFH, looking for the 200 - 300 cash flow is not the way to go. STR will always cash flow better for SFH, just have to be the right house in the right market.
The holds are the 2 - 4 unit buildings. Why? Well, one, I've never priced out a DSCR loan for a 2 - 4 unit building that wasn't a DSCR beast. I've seen 1.5x - 2.5x DSCR routinely when pricing out 2 - 4 unit buildings. Second, the 2 - 4 buildings fall under same program as the single family houses. Same leverage, same rates. Once you step up to 5+ leverage gets cut and rates go up.
Do some googling and calling. Look up top STR markets in US, look up "how to grow my real estate portfolio", look up "best markets in US for the BRRRR", start calling agents in markets, contractors, lenders, start feeling out who is a right fit for your team.
I've built networks in two different markets and I can tell you ppl come and go and some start well and then slack, there's lots of trial and error because ppl are good on the phone.
So you see there's so much going into this goal of yours. Lots of trial and error and learning from mistakes, so much more capital needed than 50k, so much work to do building a drag net across 5 - 8 markets to capture opportunity then have boots on the ground to put plans in motion.
Don't do the long term goal right now. Stick to short term goals. Get your 50k together, make sure your credit is right. Once that is set, you need a cookie-cutter, inexpensive project 1. Buy under 150k, rehab no more than 70k, the exit around 300k. B or better neighborhood with an active sales market. That's a standard cookie cutter deal that I have gotten 90% financing on for 1st timers.
You have to get in a market where 50k let's you play. Don't forget there is more than the downpayment, you have closing costs, holding costs, deposit to a contractor to start work.
I recently put two new clients from BP in their first ever bridge loans for a fix and flip in my PA network and they bought for like 180k and I got them 90% financing and between the downpayment, closing costs, holding costs and fronting the GC I partner with the deposit they will need to extend like 45k - 55k to see through a 5 month project where they will net about 30k - 40k after all taxes and expenses. So your 50k doesn't stretch as far as you think once you start adding everything up.
