I’ve purchased and remodeled a small single family for a total of $50k that now rents for $875. Monthly carrying costs are $160 for property manager, taxes, and insurance.
Should I just relax and take my time or take a mortgage out on the property to go eat another? I can get a 15 year mortgage at 4.25 from my local credit union. I’m stuck between wanting to be debt free and scratching this itch to get more properties.
My opinion is move forward with a healthy balance of debt free properties and leveraged properties. So, there should be a couple debt free properties to create a nice cash flow and credit cushion before picking up more debt. And, as you proceed with debt, it's important to measure that against your unleveraged properties so you don't face too much stress on your portfolio.
Other folks will say that you should just go full BRRRRR until you don't have anything to your name except a bunch of properties that cash flow $50/month. In the long run, you'll pay off a wider spread of properties but you aren't going to be enjoying immediate benefits. It's essentially what you feel comfortable with in terms of risk and how much money you want to bleed out to the bank.