I purchased a triplex in 2008 for 605k and rehabbed it for 30k in the city of Long Beach, CA. The building has (2/1, 1/1 (ocean view), studio) I collect about $3300/mo gross. I paid off the mortgage because I thought saving 6% in interest and receiving $40k/yr in gross rents would be better than my money in the bank (i think i'm getting a 5% return vs money in bank). My expenses include community trash/elec about $250/mo and property tax about 6k/yr. I use the cash flow to help pay for my 4plex (property tax of 8k/yr and 300/mo utilities) which is breakeven, purchased in 2005 for 800k, 650 left on the mortgage. I have piece of mind and i'm not digging into my pockets to help pay for these rentals.
Now, I have the itch again for investing in real estate. I'm looking into several options ie such as SFH, more multiunits, and multiunits>5. At first i wanted fully paid condos, but now not interested. Most my money is tied up with the fully paid triplex and it's in an LLC. Cash for new purchases will take about 1-2 yrs for me save for a lg downpayment. I feel like if I don't do something now, I may lose great opportunities. What would you do? I have been trying to answer this question and can't seem to find a good answer?
what seems best is to change the triplex back to my name, refinance for cash, buy a sfh or multiplex, my investment buddy says, sell the triplex or refi to buy an apartment with it. Any of you savvy people know of ways of making me more money?
I understand leverage is a big component in this forum, but having paid that triplex off, piece of mind, and getting about 3-5% net is priceless. oh yes, did i mention, my goal is to get by retirement $250k+/yr in rents (don't know if that is too little but sounds like a good start!)
