Investor · Hollywood, FL · Member since 2016 · 22 posts · 4 votes
Hello again everyone, I am still new at the real estate investing game and have a passion for real estate. My goal is to buy two rental properties a year for the next 5 years.
How do investors buy quickly like this?
I currently own a single family home. I want to buy a multi family or other single family homes. I got approved for another loan yesterday.
I read about and listen to podcast from other investors the buy then refinance to cash out to purchase another property?
So the question is how do I buy two properties a year like this?
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
10y
Seller financing and private money is the fastest way to grow. Period.
Don't limit your thinking to only being able to do 2 properties a year.
Find a local landlord wanting out and buy their whole portfolio with a small down and seller financing.
Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
10y
@david rocca
If you have the cash for the down payment and find a deal, buy it. Buy another when you have the cash for the down payment. This is how one buys. This method works for me because my rents cover the cost of paying the loan and operating expenses, plus setting aside 10% of the rents for capital improvements and 5% for repairs. Have you found an area to invest where this method pencils-out? Your current deal might, if you can float the below market unit until the lease runs out, plus you will be out of pocket for the repairs. Do you have the funds for the repairs? There is no hurry to buy. The important thing is to buy right so that you have the funds for your next purchase.
A re-fi happens when there is an increase in value from when you bought it, to the day that it is evaluated by a lender, who is willing to reset the market value. This may happen because you improved the building, attracted higher rents, or you may have purchased something under market and are able to re-fi at market value. Your current deal is market value, as you said. It is not a deal for re-fi.
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
10y
Seller financing and private money is the fastest way to grow. Period.
Don't limit your thinking to only being able to do 2 properties a year.
Find a local landlord wanting out and buy their whole portfolio with a small down and seller financing.