My wife and I are anxiously waiting for our SFH rental property to close mid-Sept. We've had this property for over ten years and plan to take the equity (via 1031 exchange) and invest into a larger project(s). It's taken us a while to make it to this point coming out of the recession and knowing the markets are at an all-time high, we want to ensure we align everything as best as possible before our next move. I'm going to outline some of our goals and areas we are looking for advice below. Would love to hear your feedback on pieces on any or all of it.
-Own 15-20 doors by 2021
-Become a success story within the BP family
-Quit our JOBS by 2022 (w/passive income from investment properties and our real estate business)
Financial snapshot for our purchase-
-$91k (1031 Exchange money)
-134k (Cash and LOC)
-Total=$225k to invest
We are on a tight timeline with the 1031 money, so would appreciate advice on our overall strategy
As a seasoned investor, if you were in my shoes and with our goals in mind- what would your strategy be? Please keep in mind that we will have a 45-day window to select at least one property with a value of at least $265k.
1) BRRR (to continue equity growth)-This seems like a great strategy, but I'm concerned with interest rates continuing to rise
2) Invest it all in one property
3) Find multiple properties
4) Other- please explain
There seems to be a lot of different ideas out there when it comes to returns. What type of annual return should we be targeting with this amount of money?
What are your top two favorite markets and why
If we are unsure about the type of property we are seeking, what would be your strategy for lending? Should we find conventional and commercial financing simultaneously?
Any additional advice you have for us beyond these bullets will be happily accepted.
Thank you all so very much for taking the time to read and respond!
with the clock ticking, it might be worthwhile to remember "the best is the enemy of the good." and look for deals that will meet your needs, rather than looking for the best possible option.
If you are comfortable with BRRR and can lock in rates, that could be a good place to start. It might also help to take the pressure off yourself and know that you only have to have the 91k reinvested fast- the rest you can do more research and make different decisions.
Somewhat unrelated, I am very excited about the book "Profit First" and using Mike M's method of organizing my RE income. Good luck!
@Amanda G. Thanks for the response and advice. I'll add the book you've mentioned here to my list.