How to Start Scaling After Your First Deal

Question

Hey everyone, looking for some perspective now that my first deal is officially done!

I just closed on my first investment property, a small duplex in Northeastern PA. Purchase price was $255,000, and all in (down payment, closing costs, etc.) I’ve got about $75–80k into the deal. The property is in solid shape, doesn’t need any immediate work or major cap-ex, and should rent for around $1,300 per unit.

I’m trying to think through what my best next move should be if I want to continue scaling. With that much capital tied up in one older duplex, I’ve been wondering whether it would have made more sense to pursue more highly leveraged deals and spread those funds across multiple properties, or if focusing on one solid property at a time and saving up every few years to put 25% down on the next deal is the smarter approach.

I understand there are ways to get into properties with lower cash out of pocket (house hacking, owner-occupied strategies, etc.), but I’m hoping to continue buying properties strictly as full investment properties, not primaries. That said, I’m definitely open to hearing other perspectives if there’s a smarter way to approach this.

In my market, it also doesn’t feel like values are going to jump significantly anytime soon, so I’m not sure refinancing would realistically be a near-term option to recycle capital faster.

Definitely reaching out to hear from more experienced investors, especially anyone operating in similar markets. Would love to hear how you approached deal #2 after your first one. Thanks in advance — appreciate the insight! :)

Camren Berry · Answer

Hey Kenadi, Congrats on closing your first deal! It sounds like you bought a solid duplex with strong rents relative to price, so there’s nothing wrong with letting that asset perform while you rebuild capital. Some investors do prefer higher leverage to scale faster, but that comes with tighter cash flow and more risk, so it really comes down to your goals and comfort level. My team works with investors who want to keep building portfolios without having to put up any capital to purchase themselves, so we can definitely talk. Either way, you’re off to a great start. Deal #1 is always the hardest.

Nicholas L. · Answer

@Kenadi Defio

I ran into the same issue and only buy using BRRRR or seller finance

Jules Aton · Answer

Agree there is nothing wrong with taking a breath and getting this one running smoothly before deciding on step two. Unless you have solid reserves be careful about spreading yourself too thin. While I get the no risk no reward thing I have also seen people lose big because they were focused on the get rich quick avenue. I used to save up for the next down payment although I also did house hacks and owner financing along the way.

How to Start Scaling After Your First Deal

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