Are We Growing to fast?

8 Replies

My boyfriend and I have recently gotten into rental properties. We purchased our first rental (a duplex) at the end of December. We started renting it in January. Long story short, we are closing on another dduplex which will bring us up to 6 rental units. 

Are we trying to grow our business to fast in the first year?

Congratulations, @Aubrey H. ! Six units in less than a year is awesome.  In my opinion, as long as you continue to build out your systems to manage your real estate business and have sufficient cash reserves, you shouldn't be concerned about growing too quickly. 

Do you have a partnership agreement that goes over if the 👦 👧 thing doesn't work. 

As for going to fast. Maybe. Lots of people do volume with deals of dubious value. 

You need to post 🔢 S.

Originally posted by @Aubrey H. :

My boyfriend and I have recently gotten into rental properties. We purchased our first rental (a duplex) at the end of December. We started renting it in January. Long story short, we are closing on another dduplex which will bring us up to 6 rental units. 

Are we trying to grow our business to fast in the first year?

Do you have enough cash reserves for potential problems?

Agree with the above. Be sure that as you grow you have the savings/income to take care of unexpected maintenance and cap ex. And be sure you are structuring the business in a way that protects your interests. Relationships can change, and you need to have a plan in place if they do.

Agree with the above. Be sure that as you grow you have the savings/income to take care of unexpected maintenance and cap ex. And be sure you are structuring the business in a way that protects your interests. Relationships can change, and you need to have a plan in place if things don’t work out.

Provided you had a lawyer draw up your business partnership agreement and you have a solid business/financial plan ON PAPER  that has contingencies for all possible issues, with the reserve funds to back it up then the speed you move at should be consistent with that plan. If you are feeling anxiety over your situation it is likley due to th elack of a business/financial plan and you are likley moving FAR too fast.

The real question is are you doing it safely? Do you have reserves for the properties you’re buying? Do you have equity in the properties to buffer against a turn in the market? Above all else re you cashflowing? If all these boxes are checked then who cares how fast you’re buying.