Rental Property Investor · Granbury, TX · Member since 2020 · 84 posts · 70 votes
I started my real estate investment journey in 2016 by buying my first SFR with a 401K loan. I currently own 5 SFR but I am wondering where to go from here.
Currently cash flowing around $1,200/month and want to scale up faster but I honestly don't know where to go from here. I work a W2 job making decent money and have just been saving up for each rental and making the 20% down payments with conventional financing.
It definitely gets easier with the additional rentals but still too slow for my goals.
I have set a goal for $10,000 per month in passive income but don't see that happening for many years much less than the 5 year time frame I set for myself.
How do I progress from my current position to where I want to be?
Phoenix, AZ · Member since 2021 · 504 posts · 282 votes
4y
Nice job building your portfolio.
First thing I would consider is leveraging my equity (make your money work for you!) Have you considered taking cash out of your existing portfolio? What kind of equity positions are you in today?
There are so many additional questions to be answered, especially with regard to cash flows by property (any worth getting rid of bc the cash flow doesn't make sense). $1200 with 5 doors seems like you might be able to find more profitable opportunities, including multi-family.
Do you self manage? Have you considered scaling by investing passively (syndications)?
Thank you. I was able to cash refi two units and get a decent 5.1% 30 year fixed rate. These other properties are on 5/25 year commercial loans with decent rates and I plan on holding these for the 5 years and cashing out then.
Was doing a second mortgage an on your equity an option for you or was the rate of the refinance better than the rate of the mortgage you financed out of?
Thank you. I was able to cash refi two units and get a decent 5.1% 30 year fixed rate. These other properties are on 5/25 year commercial loans with decent rates and I plan on holding these for the 5 years and cashing out then.
Was doing a second mortgage an on your equity an option for you or was the rate of the refinance better than the rate of the mortgage you financed out of?
For me the numbers would have worked out better to get a LOC since I had lower rates. I was having a hard time finding a lender to give a LOC on an investment property and was running into a time crunch so just went with the cash out refi since I knew I could get it done in time. It wasn't the best scenario but I am still happy with the result.
Thanks for sharing your experience and excellent job on growing your portfolio! The best part will be the day you quit your W2 job. I quit mine September 2020 and haven't looked back. Like you, I made some changes to maximize the efficiency of my portfolio (1031s and refis). I am also now flipping more properties and have gotten into private money lending.
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
4y
Hi Brad-
Very impressive portfolio. I believe I can help you figure out where to go from here in terms of increasing cashflow and financing more properties.
Would love to jump on a call with you - I'm a private (asset based lender) in Austin that specializes in short term rentals, so sounds like a perfect match to help!