Transitioning from Small to Big
We started out investing in small deals probably like most people who have to create their own real estate rental company. We have bought several properties in good to great areas in NOLA that needed extensive rehab so we could gain equity and pos cashflow. Our most recent deal is netting us more than 250k.
My strategy has simply been buy the property no one wants in a great area manage the renovation myself and be pretty aggressive with the purchase price and renovation cost and end up with significant equity so we can do the next deal, but we don't sell we hold onto them and refi or do 2nd loans or whatever, its been much more difficult recently to pull the equity out.
I'm looking to make the transition from these small deals, 2-4 units, to the mid (10-60) and big deals (60-200).
Any strategic advice is welcome or suggested sites or more questions, I'd really just like to make the leap to big deals (60-200), in my mind to make such a leap may be far more difficult and I'm not sure if I should just go with the mid size and not jump to fast.
Also, I'm close to our passive profit equaling and exceeding our expenses. I love what I do but I want to just manage our real estate and focus on this.
Questions:
-Conventional financing for investment seems to be at 80% loan to purchase price, is this right? Any banks doing anything better? I know I could really try to negotiate and find someone who might be in a tight spot.
-Any ideas on financing.
-Are the mid-size residential deals worth going after or should I just give it my all and do what it takes to get to the big deals?
-Where are the best sites to be watching for these (loopnet (premium member), auctions, etc.)?
-I have a small possibility I could financially do the big deals on my own or with just 1-2 investors, the medium deals I could def do on my own, should I just try to do it on my own?
-Any advice is welcome, feel free to answer whatever you can.
Thanks!