A new investor all over the place

4 Replies

I have now acquired about 35 rentals in a very short period of time (15 months).  Almost all of them are on 5 year/15 amortizing notes cash flowing an average of $125/month.  I only have one private money investor who invested once, and I've been BRRRing with that money to get this far.  I'm starting now to feel like I need a full-time employee if I want to keep growing, and local banks are slowing down on how fast I can acquire new rentals.  I've got 3 properties I plan to flip before the end of the year to try to help build some cash reserves.  I want someone to look at what I've written here and help me decide 1) whether to grow and add employees and 2) whether I need to hire a mentor to help me make sense of where I am right now.  Some days I feel like all the maintenance calls checks going out each month just isn't worth it, but most days I want to head towards my goal of $10,000 cash flow a month.  I've also thought about reaching out to one of these major portfolio lenders and putting everything on more fixed long-term debt to increase my cash flow, but I like the idea of paying everything off in 15 years.  I know interest rates may go up in 5 years though......  Maybe this when I start writing a book?   I guess this is scattered, but let's see what kind of responses I get.  

I'll just point out that this is one of the problems with buying doors just for the sake of buying doors. You get so many doors that you have to start employing people. You spend all your time managing them. You've basically built yourself a job. Who knows? Maybe that was your plan.

Ten houses fully paid for can bring in $10,000 a month and take very little effort.

35 houses cash-flowing $300 each can bring in the same amount of money but require far more work and carry far more risk.

What's your goal?

My goal is 10,000 net monthly.  This is why I'm thinking about portfolio loaning them to a 30 year product.  It would get me pretty close to 10,000 net with current portfolio.  Having them on a 15 year product is cutting the cash flow significantly, but would allow me to pay them off sooner.  I woudn't mind having 80-100 doors, hitting the net income goal while helping put people to work in my community.  But I would prefer to just have the monthly net with a few doors as possible.  I'm 31 with this current portfolio.  So I'd love it if you have suggestions for where I should move going forward.

PS I don't think any of us buy doors just to buy doors.  We're in it for BiggerPockets for ourselves and those we come into contact with. 

Well let me first congratulate you that is wonderful and a true testament to your business savvy . That’s a great portfolio for being in only a short time . Maybe it’s time to hire just a part time help with screening taking calls and turnovers . Maybe a family friend who could use a couple hundred a week and is responsible and has some free time to give you some sanity and time to find more deals