Best strategy for scaling up our RE business/hobby
Would love to get some input from people in regards to our situation and what the best strategy is to increase our real estate investing strategy. Here are some details:
1.) We have a SFH paid $113,500 for in March 2013 with 20% down conventional financing. Using BP's investment calculator on this property we cash flow about $150/month (actual's show more but staying conservative).
2.) We just purchased a duplex a week ago for $108,000 with 25% down using conventional financing as well. Once again using BP's investment calculator on this property we have an estimated cash flow of about $210/month.
3.) Total monthly cash flow = $360. Annualized = $4320. This would take about 7 years to accumulate enough cash (roughly $30-$32K) to purchase another rental in our Oklahoma City/Edmond market.
So my major question is should we take the cash flow and let it increase until we have enough to buy another rental or take the cash flow and put it towards the duplex which has the lower loan amount and cash flows the best. Thanks in advance BP members!