I am anticipating us being turned down by the banks because of our low personal credit scores, however, i am not giving up hope of being able to refinance our first rental to get another property.

Should I anticipate difficulties making this transition even if the current leases do not auto-renew?

I have a duplex in the city that came with a higher price tag that took longer to rent than I initially anticipated.

As a result, I want to lay out a scenario I hope to create (let's assume I can create the scenario below) and I am asking feedback on all of the things that could go wrong that I should anticipate/prepare for: Scenario:5 fourplex properties = 20 units (average $900/month rent) - Looking for cash flow not necessarily appreciation for these properties$1.5MM in investment property debt (Average purchase price $300K; Market Value $400K)$500,000 equity across properties (Average $100K)Loans: Conventional fixed rate or seller financing fixed rateRental Income: $18,000Mortgage for all properties monthly: $10,000Cash Reserves on hand: $200,000 (separate from the equity in the properties)Reason for Scenario: My purpose in stepping away from a full-time job would be to start ramping up flips to pay down the mortgages over time.

Hi, Chris,Thanks for your response.Home is from 1999, and the HUD plaque is in place outside the home, and the data plate is still inside the cabinet.I have a couple of cash buyers who regularly flip manufactured homes, so I anticipate that this one will appeal to them as well.

Outcome was better than anticipated and rents are higher than I expected :) Property came with new roof, AC, hot water, and furnaces.Total rent in 4 units: $3,265What made you interested in investing in this type of deal?

Outcome was better than anticipated and rents are higher than I expected :) What made you interested in investing in this type of deal?

Outcome was better than anticipated and rents are higher than I expected :) What made you interested in investing in this type of deal?

In Dodd Frank, they anticipated that some might carry paper to get around Dodd Frank (not that you are doing this) and therefore they also "cast their net" over seller carry backs.Most importantly, please don't rely on what I say, except to inspire you to seek legal advice (which I am not qualified to give) from a qualified attorney in this area, and structure this so it doesn't get you into legal tangles or possibly worse, interaction with the CFPB.

With rent increases like this, it almost justifies buying with neutral cash flow in anticipation of raising rents.