how to buy more rental properties

Question

hello all,

My husband and I own 4 properties. Our home in Houston and  a triplex in Galveston. Currently two are rented out and third one as an airbnb vacation rental.

We are looking into buying more real estate but wondering how?

How do guys do it to keep adding if there is not much money saved  up.

any tips, suggestions are appreciated.  Thank you.

Cody L. · Answer

The problem people have with growing a portfolio is some don't want to sell as they view that as going backwards.  But sometimes you have to sell, to realize the gain, to get the $ to buy the next larger property.   I started with an 8 unit and I now have 1400 units.  I didn't take on any investors.  The growth came from selling and refinancing at the right time.

Dean Letfus · Answer

Assuming you are buying decent assets I think it's false economy to sell, until you're ready to retire. if you buy decent assets below market in markets that have some growth and leverage them to death when you start out then you should never need to sell.Over time you are creating equity by debt reduction, appreciation and increased cap rates so you can then continue to leverage. I'm a non resident alien and did a lot of flipping to build up capital when I started but now I can just 100% borrow from my bank in Memphis as I have plenty of equity. So I can, in theory, scale infinitely providing I keep pace with my equity.

Joe Villeneuve · Answer

Flipping.

Flip your cash through a property, take only the profits ou...and reinvest the seed money into the nest one.  Spend the Profits ONLY...never spend your seed money...but use the same seed money to infinity.

Princess-Shaloni Burch · Answer

@Constancia Russell I live in a rough neighborhood so I see what the city is changing first hand. Repaving roads thats been horrible the last 20 years, adding new grocery stores in the area and the rehabbing of a lot of old abandoned buildings are a few things I noticed. You can also stay in tuned with your town hall once you know how to read the maps by each neighborhood you can often see articles in the papers and online about new development plans.

Princess-Shaloni Burch · Answer

Hi Valeria! I am a newbie so I don't know too much but I also thought of moving to the Houston area for investing in the future. Do you think there is opportunity to refinance your triplex to use the equity or would that hurt your overall strategy?

Valeria R. · Answer

@Princess-Shaloni Burch Houston is awesome. I believe you get more for your money here, well in Texas.

I think that's route we're going to take. But I see lots of people who own lots and lots of properties and wonder if that's how they do it. Through refinancing.

Princess-Shaloni Burch · Answer

I was thinking the exact same thing as far a s bang for your buck. In Chicago you really have to watch for city planning and catch the gentrification wave to make equity out of nothing. I listen to the BP podcasts often though and BRRRR seems to be a good way to go when considering refinancing and I know they have written a book about it too. I think its a smart bet for you since its a triplex and Gavelston is such a cool tourist area I would think the property would asses for a good amount that you could pull out.

Alipate Moleni · Answer

@Valeria R. You could house hack your triplex. Live in one unit air bnb the other two. Sell or if you refi your Houston house you could air bnb it as well. The money will flow in and you'll be living for free...

Priscilla Swantner · Answer

@Valeria R. I started flipping to get the capital to buy more rentals. My plan is to scrape the profit and use that to reinvest in buy and holds.

Constancia R. · Answer

@Princess-Shaloni Burch, how do you find out where the gentrification waves are, though? I've been interested in this but have not had much success finding these areas before they are heavily gentrified and the deals are scarce...so far, that is!

how to buy more rental properties

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