@Victor Baronich
I’ve seen some good feedback in this thread.
I own a three SFH's too and shoot for $200-$300 clear each month so I understand where you are coming from. I save the $200-$300 for major repairs and reinvestment in the property. I've owned these rentals for ~ 4 years on average as well. I've felt some of your pain as well when things go wrong on the turnover/repair front.
These are my thoughts:
1. Watch your turnover. If they are leaving every year, that is tough as you lose 2-3 weeks of rent, even if things go well getting a new tenant. Make sure you are at market on your rates and don’t be too aggressive about raising rates to push your tenant to leave.
2. $3-$5K for turnover repairs sounds high. I’m usually $1K or less. I also ask them to pay for wall painting or floor repairs if it is their wear and tear. I also live in a generally high priced market for costs.
3. Define your goals. I’m playing the long game. While I cash flow, my goal is to build equity through appreciation and loan amortization. Cash flow growth will come.
4. At 12 SFH, possibly start looking to roll up into multi-family. That is where you scale and profits grow because you generally can reduce structural repairs on roofs, etc compared to number of units. I recently bought a duplex and am thinking of how to 1031 my SFHs into multi the next couple years as equity builds.
Good luck!
Troy
